by Alexis Whaley

Created on: June 03, 2009

The car insurance payment always seems like a sudden, painful surprise. You open the bill and oops, you have a large extra bill to pay that month. First thought: ouch. Somehow, even though you know it is coming, and you are the one who signed up for it, it is just way too easy to forget a bill that is not paid monthly. Here are some tips to help you remember that car insurance bill and to make paying the premium less stressful:

1. Some insurance companies will allow you to break the payment up into six-month or quarterly payments. There may be an extra handling fee of a few dollars, but it might be worth it if it works with your budget more easily and reduces stress.

2. Figure out how much the car insurance costs per paycheck and put that away in a savings account (and don't spend it!). Then the money will be available when the bill comes.

3. Track expenses. Write down exactly what you spend and what you spend it on. When you do this for 1-3 months, you can see where you might be able to cut back in non-essential spending, and be able to pay the car insurance bill more easily.

4. Create a bill schedule. Write down every bill, the approximate amount that will be due (for bills that vary), and the due dates. Do this for all bills, even ones that are only due once or twice a year. Post this in a prominent place where you will see it every day, such as by your computer, on the fridge, or by your front door. Then write the due dates down on your calendar, and add an entry 3-5 days before the due date (depending on whether the bill needs to be mailed or is paid electronically) so that you can pay it on time.This way the car insurance bill will become less of a surprise.

5. Work on lowering your rates. This can help with your budget over time. Check out my article titled Ways to keep your auto insurance rates down for tips.

6. Review your rates with the insurance company. Do a little comparison shopping from time to time to see if there is a better deal out there. Sometimes your current carrier will find a way to lower your premiums if you tell them that you got a lower rate from a competing company. All you have to lose by doing this is a little time.

Getting your bills organized can be painful at first, but it will reduce stress and make the whole process more palatable over the year. Paying your bills on time will improve your credit score, which may bring lower car insurance and credit card interest rates.

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