Although making monthly payments is an excellent way of dispersing the costs of coverage, there are a few concerns that motorists should be aware of. Should a policyholder miss a payment there is a chance that the consequences can be very unpleasant. Doing so could potentially result in a number of fees, a lapse in coverage, or one’s policy may be canceled entirely resulting in a cancellation fee or reinstatement fee when the payment finally arrives. Although a monthly based policy may be an exceptional option for many vehicle owners, motorists are still encouraged to investigate as many options as possible. One choice that may end up saving a vehicle owner a large amount of money is paying for a policy in its entirety upon signing.

Although paying in full can often amount to a large sum of money, paying for coverage in this fashion has several advantages. When a policy is paid in full the policyholder will not have to pay yet another monthly bill, which in turn eliminates the chances of making a late payment and the consequences that typically follow. Additionally, motorists will not have to pay any financing fees that typically accompany monthly payments, which can sometimes be around $10 a month. To find a balance between the two options the Washington State Office of the Insurance Commissioner recommends paying for a premium in full every six months in order to avoid any potential fees that may come from monthly financing. Knowing this information, as well as any additional details can all lead to more affordable coverage.