Almost everyone pays their car insurance every 6 months.
This is the standard premium payment plan, and it is one that most drivers and insurance companies are used to and have come to expect.
However, given the economic climate it is not always the best plan for both drivers or insurance companies.
Unfortunately (or fortunately depending on how you look at it) car insurance is a necessary expense in America today.
Accidents happen often enough, and are expensive enough, that every state has mandated that legal drivers carry active insurance policies against damage they may cause.
Given how tough people are finding it these days to save any money given rising unemployment, lower wages and work hours, and unexpected expenses, many drivers and insurance companies are turning towards monthly payment plans to lower the burden of carrying insurance.
Paying a smaller amount each month makes it easier to keep up with an active policy, instead of having to save up for months despite temptations to purchase more exciting things than car insurance.
Lowering your monthly car insurance payments can be as simple as driving less and starting to take more public transportation, since your driving record and wear and tear on your car are taken into account when calculating auto insurance premiums.
If you drive less, you will get into fewer accidents, fewer speeding tickets, and your risk profile will go down, and more insurance companies will be willing to offer you good driver discounts.
One thing that people often do, due to impressive sales tactics by their local insurance agent, is to purchase more car insurance than they are likely to need.
Agents tell us it's only a small amount extra on the policy, but these days every few dollars count, so if you are purchasing more than the state mandated minimum coverage amount, consider lowering your coverage to save some cash.
Be sure that you are not setting yourself up for a big financial fall if something bad happens, though.