Motorcycle Insurance Articles
Deciding Whether To Pay In Full For Your Motorcycle Insurance Policy
2010-04-19
There are often a number of ways to pay for your motorcycle insurance policy, and changing your payment schedule can have a fairly big impact on your rates. In fact, paying for motorcycle insurance coverage in full can often cut up to a few hundred dollars off your rate, so it seems like a no brainer for a lot of motorcyclists. There are also some disadvantages to in-full payments, and it's worthwhile to consider whether they're a good option for you before you buy your next motorcycle insurance policy.
The big drawback of making in-full payments is that they're sometimes a few hundred dollars in a single lump sum, and many drivers simply don't have that kind of money lying around. However, as pointed out above, you'll certainly be paying less overall by making this large lump payment, so budgeting a bit each month in order to make your payments in-full can be quite advantageous. Some bikers feel that month-to-month payments are easier to budget and schedule, but putting aside a bit of money each month into your savings account for your next motorcycle insurance payment can work in the same way.
You should also consider the fact that if you ever decide to cancel your motorcycle insurance coverage in order to switch to another company, you may have to wait a while for a refund check if you've been making in-full payments and you cancel your policy before it has expired. This can be a significant drawback for some consumers, particularly if you're prone to switching insurers every few months to find a better rate. Still, the savings from making full payments will be worth the minor hassle in most cases, particularly if you've used the same insurer for years. In essence, coverage cancellation is a big reason for in-full payment methods.
Other than budgeting issues and other minor problems, it seems obvious that in-full plans are the best way to pay for motorcycle insurance. If you're considering an in-full plan but you're currently unable to afford one, try setting a bit of money aside each month to test your budgeting abilities. If you're able to pull it off without any problem, it's probably worth your time to switch your payment schedule. If you have trouble or if you simply prefer to make monthly payments for convenience reasons, you can still cut down on your payments by comparison shopping, by applying for motorcycle insurance discounts, and through many other methods. Deciding on a payment schedule may not seem like the most important part of your bike's insurance policy, but it's certainly something to think about before the next time that you renew or switch your motorcycle insurance.