By – Joan LaFemina
Did you know that how you choose to pay your insurance premium can save you money?
Your choices for paying insurance premiums include:
- Payment/installment plans – insurance companies offer 3 month, 6 month, 9 month or 12 month plans that include service fees.
- Electronic Funds Transfer (EFT)
- Pay in Full
- Or in the case of homeowner’s insurance, mortgagee bill as part of your monthly escrow account.
The option to pay in installments can make a payment manageable and service fees can be inexpensive at 4, 6 and 10 dollars, they do still add up. You may be able to save money by signing up for Electronic Funds Transfer (EFT) or paying the bill in full.
Electronic Funds Transfer (EFT) is an excellent way to have the premium paid on time and the funds are automatically deducted from your savings or checking account.
The benefits of EFT:
- Often you can choose the deduction date
- Save money on installment fees, with an average zero or $1 fee
- Transactions are secure
- Makes bill paying effortless
- No checks, stamp, missed payments
- Choose monthly or one lump sum
- Deductions continue for future renewals unless you cancel your authorization
Paid in full plans may offer a discount with some carriers ranging from 5%-30% on the total 6 month or annual premium.