- September 6, 2014
- Posted by: admin
- Categories: Auto Insurance, blog, Payment Options
Insurance Payment Options
Most payment options are: Cash, Check or Credit/Debit Card
When you pay your car, home, or motorcycle insurance automatically out of your bank account each month there are a few things you should know.
Whichever method you choose be sure you never have your Car Insurance Cancelled for Non Payment.
- The company will attempt to take the money the morning of the day you have it set up each month.
- You must have the money in your account the day before – before 2 pm for it to safely post for the next day – you might want to check with your bank about this.
- No withdrawals on Sundays or Holidays when the bank is closed – it will always occur the next day.
- If you wish to change your due date – you must make this change at least 2 weeks before you want the money deducted. Check with your agent about your company’s specific rule on this.
If you make a change on your policy – for example – change cars, drivers, garaging, add a car or driver, etc – all of these changes can change your monthly payment.
Typically if you make the change 3 weeks prior to your deduction the insurance company will have time to adjust your payment and send the new information to the bank.
However, if you make a change a few days or a week ahead of your payment – that next payment will not reflect your change – so it is important to stay on top of the situation and see how it affects your next payment and all future payments.
If there is a change in your payment amount the insurance company is required by law to send you your new billing information – so keep an eye on the mail for that change information.
The secret to this payment method of pay car insurance with automatic bank withdrawals is to be sure to give plenty of time (at least 10 days in advance) for any changes and plan them appropriately so as not to throw off your billing. Call us to discuss the different car insurance payment options.
How Can I Pay?
There are several ways to pay your car insurance as there are many car insurance payment options available when you get
your Springfield Auto Insurance. So what are they?
- Pay in Full – If you pay your car insurance in full for the year or for six months on a six-month policy then you will avoid all fees and pay as little as possible given your situation.
- Large Down Payment – If you want to lower your monthly payments you can put a large down payment – the remaining balance will then be divide over 9 or 11 months – this large down payment will lower your monthly bills.
- Monthly in the Office – With this method the insurance company will send you a bill each month and you simply bring in the bill to the office and pay it by cash, personal check or debit card. With this option the insurance company is going to charge you a $6 billing fee each month – so this can add between $54 and $66 a year to your car insurance price.
- Pay Automatically with Your Bank Account – Other than paying in full, this is the best method. When you purchase your insurance bring in a voided check and request that your monthly payments be deducted once a month from your checking account. Many companies will also allow deductions from a savings account. With this method, there are no monthly fees.
Also if you pay monthly in the office – if you pay a month ahead of time you can avoid the $6 billing fee – discuss this with your agent. As you can see there are many different car insurance payment options just pick the one that is best for you.
Any questions on this please call our office and we will assist you