Can you pay half of your car insurance?

To pay half of your car insurance, make sure your policy allows early car insurance payments without penalty. Negotiate auto insurance payment terms before signing a car insurance policy if you want to pay half of your car insurance premiums.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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Here's what you need to know...

  • You should always have the ability to pay for half of your premium if you choose
  • Negotiate your premium billing terms to what you are comfortable with paying
  • Make sure your insurer will not penalize you should you choose to pay for your premium early

As a consumer, you have a lot of power when it comes to the car insurance marketplace. The car insurance market is one where things are extremely competitive at the moment.

When it comes to billing terms, you want to be sure that you have the options that you desire, such as having the ability to pay for half of your car insurance in one shot if you want to.

Billing terms are something that is always negotiable when it comes to your car insurance policy.

So many consumers will just focus on the coverage that they are buying and the premium that they are paying in exchange for that.

What they do not focus on is how the premium is actually going to be paid, whether it needs to be paid at once or in installments. The option of installments is where paying for your car insurance policy in halves comes into play.

If you are searching the best auto insurance quotes, start comparison shopping by entering your zip code above!

Negotiating Billing Terms


You may have the ability to have the billing terms of your car insurance policy line up in such a way that you can pay for your policy in two halves, two installments basically.

The way this could work is that you have payments that are made twice, semi-annually.

You would pay for the first half of the policy when the policy actually goes into effect, while the second half would be paid once you get halfway through the policy.

The thought process behind this as a consumer is that you are paying for the auto policy in large chunks so that you do not have to worry about making smaller, monthly installments.

Paying in installments is also a better option for most than paying for your policy in full up front because you will not have to put out all of those premium dollars at one time.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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Make Sure No Penalty Exists

The one thing that could come back to cause issues for you is if your policy is not set up for the two half installments, and you decide to pay the premium in that way anyway.

Let us say that your policy billing terms are set up so that you are to pay for your car insurance policy in monthly installments over a 12-month period.

You get a few months into the policy and then decide you would like to make a larger payment to pay off half of the policy premium.

There are some insurers out there that may actually penalize you in the event that you strayed from the premium billing terms that you agreed to.

You might be penalized even though you are technically paying out premium dollars earlier than you even had to out to the insurer. Be sure that the billing terms you agree to allow for such an act.

Everyone wants to know what their options are when it comes to actually paying for their car insurance policy.

When you are shopping for a car insurance policy in the market, be sure you are comparing premium billing terms just like you compare premium, coverages, customer service, and more.

Start comparison shopping for auto insurance rates today by entering your zip code below!



Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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