Question: I am thinking of buying car insurance online instead of my traditional provider. All these days I’ve been paying my agent through a check. Can you tell me how will I pay if I buy auto insurance on line? Do I have to pay only through my credit card, or are there other options?

Answer: Most online insurance providers support a number of payment options. You can pay online through your credit card, through paypal, through a bank transfer, or even through the traditional check. Just confirm from your auto insurance on line service provider. They will have the necessary details.

If you’re technically savvy, and also aware of the precautions you need to take while making payments online, it is certainly a convenient thing to be able to pay for your insurance easily from your home.

Many auto insurance on line websites will also set up an auto debit mechanism if you authorize it, so you will not even have to remember that you have to pay the insurance bill. But I recommend that you make it a practice to pay all your bills manually on a specific day each month. It will help avoid nasty surprises about your bank balance expectations.