Yes, you can afford car insurance. But it'd be a whole lot easier on your budget if you could pay the premium in monthly installments instead of an annual lump sum. Or maybe quarterly payments are ideal. Quiz your agent on all possible payment options. Most insurers offer at least annual and six-month premium payment options. Those that offer more frequent payment options often tack on a several-dollar surcharge or, conversely, offer discounts to those who pay the entire annual bill at once. Make sure to inquire about your options if you know it will be problematic to pay annually [source: Cars Direct].