Insurance Payment Plan Options

Insurance coverage can be paid in a variety of ways.

Auto insurance is generally paid in full, in two semi-annual payments or month-to-month.

• Most drivers elect a month-to-month payment plan, either direct bill or automatic draft (EFT). The direct bill option allows the customer to pay by mail, by phone or online. Most companies charge a small monthly processing fee for a monthly fee. The EFT option drafts payments automatically from a checking or savings account. This option ensures the bill is paid on time and likely waives or discounts the monthly billing fee.
• When paying semi-annually, the first half of the total policy premium is paid up front and the second half is paid midway through the policy term. Billing fees are limited or waived.
• Paying the policy in full at the onset of the policy term waives any continued billing charges and can offer further discounts.

Home insurance is paid by the mortgage company or the property owner. The mortgage loan will stipulate whether the insurance is escrowed by the mortgage company and paid to the insurance company—called a PITI (Principle, Interest, Taxes and Insurance) loan. If the loan is Principle and Interest only, the owner is required to pay the insurance, the same way he/she is required to pay taxes on the property. Mortgage companies prefer making the insurance payment directly to the insurance company because if the house was destroyed, the insurance company wants to be reimbursed for the loan before money is awarded to the homeowner.

Discuss payment options with your insurance agent to make sure the payment method selected suits the customer’s needs.

Give us call or start your Insurance Quote today!

Allied Insurance at The Insurance Loft

1630 Welton St. Ste. 202
Denver, CO 80202
1 (888) 688 1446

By Brian Cook