PDA

View Full Version : Auto Insurance Question


HIDStop
06-25-2008, 02:43 PM
I just called up my insurance company for a quick quote on what i would cost to insure a new car that I am looking at. I was told that it would be $1,331 annually - but $243 per month. The person on the phone rushed through something about 9 months left on the policy, adjusted payments, and possible different payments upon renewal.

The renewal portion I am aware of - is there anyone here that can shed some light on the monthly payment quoted vs. the annual quote?

Cheers
The Cosworth
06-25-2008, 02:43 PM
right now I am paying for 11 months in 8 or 9 so my monthlys are quite high
Skyline_Addict
06-25-2008, 03:07 PM
When you sign up a new car for insurance, I believe you have to pay up 2 months-equivalent up front as collateral, atleast at my company. I can't see why the monthly payment would differ so much though...are you sure you were quoted for an annual amount?
Destinova403
06-25-2008, 03:43 PM
i dont pay any collateral but i pay for my entire year all in one lump sum... it keeps my rates down a little bit. i just put money aside in a seperate bank account on a monthly basis and pay it all at once... maybe its just my provider that lets me do that... :dunno:

it could have a difference in price because it would be cheaper to pay it all at once or something... but i didnt think it was that different so i dont know.
rc2002
06-25-2008, 03:52 PM
It's got to be a mistake. That's way too big a difference.

The difference between annually and monthly for me was only 3%.
brown_guy
06-25-2008, 04:41 PM
Originally posted by richardchan2002
It's got to be a mistake. That's way too big a difference.

The difference between annually and monthly for me was only 3%.

YA about 3% for me too but I pay all of it at once cause I am CHEAP :D
HIDStop
06-25-2008, 06:12 PM
Originally posted by The Cosworth
right now I am paying for 11 months in 8 or 9 so my monthlys are quite high

Hey - whats the reasoning for that? I belive the salesperson tried explaining something along the lines if that to me as well, but went way too fast.
Masked Bandit
06-26-2008, 08:33 AM
I'm guessing that the $1331 is the additional annual premium. You will be charged 9/12ths of that from now until the end of the year. The problem is that by the time the company processes the change, there will only be five or six payments left until the end of the term. You get stuck paying nine months worth of additional insurance squished into only five or six payments. Does that make sense?