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I just purchased a new auto insurance policy. The insurance company gave me the option to either pay my premium up front or to make monthly payments. Which is better?

I don’t think that either way is better than the other because they both have advantages and disadvantages. If you can afford to pay your entire auto insurance premium up front then go for it. Most insurance companies will give you a small discount for paying up front, so that is one benefit. If you do not have the financial means to spend that much money all at one time, then that’s ok. Just stick with making the monthly installment payments. In the end you might pay a little bit more money that way, but you have the convenience of breaking down your large premium in to more affordable monthly payments.

Paying your car insurance premium doesn’t have to be a burden, so select the option that works the best for you and your financial situation.

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