Cheap Car Insurance in Louisiana
Reader’s Question:
I’ve been shopping around for the cheapest car insurance available here in 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 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.
