As with car insurance, you can often choose between paying your commercial truck insurance on a monthly basis, once every six months or once a year. If you are an owner-operator, you might want to look into paying your commercial truck insurance on a monthly basis. Even though you will of course need to talk to your insurance agent and determine which option is best for you, you might want to pay your commercial insurance on a monthly basis for these reasons.
The Extra Cost Often Isn't Significant
Of course, you will often get a cheaper rate if you are willing and able to pay your commercial truck insurance once every six months or once a year. However, the difference usually is not significant. You should ask about how much more you will have to pay for your policy if you choose to make monthly payments; if the difference isn't significant, then monthly payments might be worth it.
It's Easy to Make Changes to Your Policy
Next, you should consider that if you pay your insurance monthly, it will be easy for you to make changes to your policy and see the financial impact more quickly. For example, if you do something like raising your deductible so that your premiums will be cheaper, you will be able to notice the difference when you make your payment the very next month.
You Won't Have to Pay Out as Much at One Time
Many trucking companies choose to pay their commercial truck insurance payments on a six month or one year basis. Many of these companies have more money to spend than your average owner-operator. If you think that paying a large chunk of money for your commercial truck insurance all at one time will have a significant impact on your finances, you might find that making your payments monthly will be easier on your budget.
You Can Set it Up on Auto Pay
You could be nervous about paying your commercial truck insurance on a monthly basis because you could be worried about forgetting to make a payment. If this happens and if it leads to a lapse in coverage, this can obviously cause big problems. However, if you set up your insurance payments so that they will be automatically taken out of your checking account each month, you can enjoy the other benefits of having monthly payments without having to worry about forgetting about making your payments. Plus, many companies do offer a discount if you're willing to set up auto pay.