Monthly Auto Insurance Terms

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We don’t know of any car insurance companies that offer terms of less than six months. If you’re looking for a one-month insurance policy then you’re better off contacting your insurance provider about different types of temporary insurance coverage, such as a Temporary Vehicle Registration or a Temporary Operation Permit. You may only be able to purchase these insurance policies for a period of one to twenty days, depending on the province you live in.

Insurers don’t like customers that are always stopping and starting their insurance coverage. There are often penalties for cancelling an insurance policy but there are ways around this. You will have to speak with your insurance provider but many companies allow you to “park” your car while you go on vacation or if you’re away on a business trip for a few months. The vehicle cannot be driven but it is insured against the cost of theft or damage while it is parked. In many cases you can even reinstate your coverage over the telephone. If you are leasing a vehicle then you may need to keep full coverage on the vehicle at all times. Read through your lease agreement to see what your responsibilities are, as far as vehicle insurance is concerned. And next time you lease a vehicle make sure you understand your insurance obligations before you sign off on the lease.

Monthly Auto Insurance Payments

Most insurance companies offer the option of a monthly payment plan. You might save more money by paying for your insurance in one lump sum when you go to renew your insurance but monthly payments are very common also. If you have cancelled your insurance in the past or if you have missed a payment then your insurance company might not let you pay monthly. It depends on their policies and restrictions. Most insurance companies will not allow you to pay with someone else’s bank account. And if you are leasing a vehicle then your bank account will have to match the person named on the lease. For more specific information you’ll have to contact your insurance company because these restrictions are different in every province and with every insurer.

What Happens if I Make a Late Payment?

It depends what insurance policy you have and through which insurer you purchased the policy. In British Columbia, the Insurance Corporation of British Columbia (ICBC) will fine you $18 if there are insufficient funds in your bank account when your monthly payment is due. After three days they will attempt to withdraw your payment once more. If you know that you’ve missed your payment then you can go into an Autoplan office and make that payment. If ICBC is unable to process your payment the second time they will contact you about your coverage. If you are unable to settle your debt then your insurance coverage may be cancelled.

How Much Will My Average Monthly Payments Be?

The easiest and most accurate way to find out how much your monthly car insurance payments will be is to get a quote, or a number of quotes. The amount you pay each month is determined by your driving record, your age, your kilometres driven each year, and even your marital status and gender. It is also determined by where you live. Some cities have a higher number of vehicle thefts each year, which means insuring a car in that area can be more expensive. Other factors that help determine your premiums include the amount of coverage you want to purchase and your deductible. Carrying a lower deductible will cost you more for insurance. One last thing to think about is your insurance company because premiums can vary greatly between different providers. This is another good reason to get a quote from more than one company.

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