When you purchase a home insurance policy to protect the value of your dwelling, outside structures, and contents while safeguarding your savings against certain liabilities, you have many different options for premium payments. As with almost any insurance policy, you can pay premiums four different ways:
But it isn’t just your payment intervals that are flexible; you can also choose up to three different methods for your payments:
- Payment via automatic bank draft
- Check or money order
- Web payments initiated through the insurance company’s website (not available in every instance)
Once you review all of your options for home insurance premium payments, the question really becomes: Which, of all these methods and possible combinations, is the best? Let’s take a look at a few different points.
The most cost-effective methods for payment: Annual premium payments result in less money spent on premiums since insurance companies charge additional fees when payments are broken up. You can also save money by making premium payments online or by automatic bank draft since you won’t need to mail checks. However, if you forget a payment is due and end up with an insufficient funds charge, you will increase your overall costs.
Methods that help ensure continuing coverage: You never want to find out that you don’t have home insurance coverage after you’ve suffered an insurable incident and if you pay your premiums annually, you won’t have to. You also won’t have to worry about a lapse after an insurable incident that prevents you from accessing your checks and calendar.
Automatic bank drafts offer another way to help prevent lapses without opting for annual payment intervals, but you must stay vigilant about ensuring that you have the money in your bank account before the draft occurs or you could end up not making the payment and lapsing your policy.
No matter what your financial situation or personal preference, you can find a payment interval and method that suit your needs. And if the same method is less suitable the following year, you can ask your agent to change it before renewal.
Find out about your Colorado Home Insurance by premiums by contacting Premier Group Insurance today!