What is Flexible Car Insurance?
Flexible Car Insurance is gaining popularity in the advertising campaigns of car insurance companies however the whole concept of flexible car insurance is not anything new.
Car insurance companies have always tried to introduce new products to the marketplace or package what they already have and call it something new. The term “Flexible car insurance” today is not being used to describe custom auto insurance policies where you have the liberty of customizing policy details but rather a spin on the payment options associated with your car insurance premium bill. There are some companies who do allow customers to create an entirely custom policy but these insurers are for a very niche clientele with usually a lot more assets than the typical driver.
So what is Flexible Car Insurance?
Obviously the use of the term will depend on which car insurance company you discuss policy coverage with but for the most part flexible car insurance refers to policies with multiple premium payment options. It’s essentially a new marketing twist on options already available.
What are my Flexible Payment Options?
Car insurance is sold in fixed terms of usually six months. While some insurers offer 12 month policies its usually very rare so over 90% of drivers purchase or renew a policy every 6 months. Car insurance companies actually have no obligation to provide payment plans and can very well demand a policy be paid in full before coverage is considered to be in-force but with the way society is today this is not a good way to do business so almost all auto insurers offer flexible payment options. Some of the “Flexible Car Insurance” plans advertised around will probably include payment options such as:
- Minimum Down Payment and 6 Even Monthly Payments
- Biweekly Payments
- Pay in Full Policy Discount
- Credit Card or Automatic ACH Debit Withdrawal
There are only so many options to pay any bill due in full over a 6 month period so do not be surprised if these glamorous “flexible car insurance” plans really have nothing different to offer than your current one.
What is the best payment option for Car Insurance?
The best way to pay your car insurance policy is in full at the time its issued since the discount can be substantial however if that’s not possible then almost any other option has equal advantages and disadvantages. What you should pay attention to is any service fees attached to installment plans and make sure you always have money to pay as you certainly don’t want to experience a lapse in car insurance coverage.
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