These days there are premiums and coverage plans available for almost everything, from houses, to boats, life, medical and many other things.
The uncertainty of life has made it possible for a person to now also get coverage for unborn children and grandchildren.
This has made the insurance industry very competitive; causing several companies to cut prices and fees down to a bare minimum.
Other companies have been forced to break their annual due payments into smaller monthly payments.
This may prove to be a good thing for the common man on a fixed income, but most people are unaware of the disadvantages of monthly car insurance payments.
On the surface paying on a month wise basis makes sense to many people because it creates a mental illusion of a lower cost.
However, in reality most people pay more in month wise payments as compared to annual payments.
This is mainly because companies use the age old rounding off technique to get a higher payment without letting the customer realize.
This can be observed in almost any premiums payment schedule which was annual and was then converted to month wise payments.
Say a person was paying USD 240 annually for auto coverage.
If it is broken down that comes to around USD 20 per month, however most companies would quote a month wise rate of USD 22.
99.
Now what most people will not realize is the fact that the.
99 is actually only one cent less of making it USD 21 per month.
This is true not only for home insurance but also for monthly car insurance.
This technique is paired together with other offers and attractive terms, to make people not focus on the aspect of common sense before signing up.
Another growing trend is the online sales technique which is also being used by major coverage agencies.
Considering the popularity and availability of the internet and online transactions, most people jump at the opportunity to buy, pay for or order stuff from the comfort of their homes.
Premium companies have also begun to take advantage of this aspect and offer some tempting deals that are only open for sign-ups online.
A great way to take advantage of new offers without paying extra when it comes to car coverage is to carefully read and study terms.
Conducting a short yet comprehensive survey of the trends and local rates of premiums, can help you get the coverage you need.