Making your premium payments once every year will save you a lot and help you get lower insurance quotes when compared to monthly payments. An insurance carrier sends 12 notices for monthly payments as opposed to one for annual payments. This costs them more.

The cost increases if you add the fact that they pay transaction fees for processing each check you give them monthly as payment. 12 checks mean 12 transactions which incur 12 different transaction charges. And, if you really come to think of it, these additional overheads are ultimately built into your rates.

As a result, you will attract cheaper rates if you decide to pay your rates yearly. The actual amount you could save may differ but you may be able to save up to a month’s premium worth with some insurers if you choose this option.