depends on the type of payment plan you choose. Most car insurance companies will allow you to pay your premium:
In full upfront, or
In installments each month
Paying in full means paying your entire premium—either for the year or six months—upfront before the policy goes into effect. Although paying in full can be more costly upfront, many insurers offer a
If you pay in installments, you will pay monthly on or before your bill’s due date. Your total premium will be divided by the length of your policy term (typically six or 12 months).
But while monthly payments may seem more manageable than paying in full, most have added fees, so if you can pay upfront, it’s often cheaper.
Another advantage to paying in full is refund eligibility:
If you pay your entire premium upfront but need to cancel your insurance before your term ends, you’ll likely be eligible for a prorated refund for your unused months.
You probably won't receive a refund if you pay your premium in monthly installments but need to cancel your insurance before your term ends.
To determine how often you’ll need to pay your insurance, read through your policy documents or
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.