Auto Insurance in Louisiana
Filed under: Louisiana non owner car insurance, SR22 Louisiana
Reader’s Question:
I’ve been shopping around for the cheapest car insurance available here in Kenner, Louisiana, and I’ve noticed that agents almost always mention 6-month auto insurance. I wonder, what’s the reason for this? Isn’t it better for them if you choose longer terms?
Sheila
Kenner, LA
A six-month car insurance can be a good thing, depending on what your insurance needs are. If you plan to travel and visit some place for six months or less, for instance, it would be a waste to get policies with longer terms, right? Or it could be that you’re planning to purchase a new vehicle before year end. Or for various other reasons, some people actually prefer six months. If agents over there in Kenner, Louisiana seem to always try to sell you six-month terms, it may be because this actually permits them to adjust your premiums twice a year, as compared to once for a one-year policy, for example. This could mean higher costs for you, the consumer, and higher collectibles for them, the automotive insurance company. But before you think they’re all money-grubbing cold-hearted leeches, it would be prudent to note that short terms could actually be beneficial to you because you can divide the payments according to a timetable that you think is more suitable for you.
A lot of people have monthly schedules, but it makes financial sense for the companies to charge you higher rates for monthly payments than for six months or a yearly total.