Last updated: July 25th 2016
Insurance agencies receive many questions about their clients insurance premium payments schedule and when or if a down payment is a good option. Breaking it down to basics, you most likely have two options.
Most policies premiums can be paid in full or monthly.
1. Payment in full- If you choose to pay in full you will likely receive the benefit of an overall policy discount which makes your insurance policy more cost efficient in the long run.
2. Monthly payments- If you do not have funds readily available and payment in full is not an ideal option for you, you may be able to select the monthly payment option. This sometimes requires a down payment which may equal the two monthly payments. One perk of a monthly payment schedule is you may be able to choose your monthly due date which can be helpful for monthly budgeting purposes.
Basically, you have the option to pay a lump sum that will equal a lower policy premium overall or you may choose individual smaller amounts that equal the sum of a somewhat higher premium. Once you make the important decision regarding payment preference, the first option requires one periodic due date and the second requires a monthly due date which will remain the same each month.
If you have further questions about your insurance policy payments, our trained agents will be happy to walk you through the specifics. In the meantime, remember: it is always to your benefit to make payments in a timely manner.