More and more car owners are increasingly becoming attracted to the 30-day car insurance policy structure; this trend is of course based on the conveniences that individual car owners accrue from doing so. There are pros and cons to this and being in the know is vital to help you make an informed driver's decision.
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30-Day Car Insurance Policy
The monthly car insurance policy structure can basically be seen as a temporary insurance provision for the specified number of days. This policy structure does not attract any down payments or deposits by virtue of the fact that the insurance cover does not stretch beyond the 30 days. In the event that claims are submitted within this time-frame, an attempt at renewal will necessitate an immediate increase in premiums/rates.
Car Insurance Policy Without Deposit
A no deposit car insurance plan, on the other hand, is one that has its contractual durations and car insurance rates similar to corresponding annual plans.
Car Insurance Premiums
In 2009, the nationwide average of car insurance payments was £1,128 making the monthly payment to about £94. The insurance costs vary from one state to the other and several factors collectively determine the cost of your insurance; these include type of vehicle, mileage driven as well as any optional coverage you choose. New Jersey, DC and New York were some of the most expensive while Illinois, South Dakota and Iowa were some of the least expensive in terms of monthly car payments.
Pros of the 30-Day Car Insurance Policy
The main feature of this monthly car insurance policy structure seen as being most attractive to car owners has to do with expense manageability. It is certainly cheaper to pay a full year's insurance coverage, but doing so monthly translates into having the much needed cash in hand; you can certainly never know when the urgent need for cash may strike on the road.
Apart from road mishaps that may necessitate cash, it is worthwhile to point out that the current trend of the economy has contributed to limited disposable incomes for many. The rising costs of owning and running a car have to be taken into consideration too. A monthly car insurance policy will certainly fit within a family's monthly budget quite snugly.
Cons of a 30-Day Car Insurance Policy
The disadvantages that accrue from this structure cannot be strictly termed as being prohibitive--again with respect to the conveniences one gets from using a personal car as opposed to public transport.
Settling the monthly bill must be done as a matter of priority. The fact that the policy does not require you to pay an extra dime for the slightest of additional coverage means that you are open to paying reinstatement fees or late penalties once you are late in making the requisite payments. This need not be an elephantine task especially in this day and age where auto-bill arrangements can be made with banks.
For this monthly car insurance policy structure you will also have to contend with paying extra processing fees. Unfortunately, these fees are not quite as transparent as they ought to be and you may end up having paid quite a substantial amount at the end of the year.
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