Insurance quotes and assistance

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Auto Insurance

Commercial Auto Insurance and Personal Auto Insurance
Keeping Auto Insurance Premiums Low
Take Advantage of Insurer Websites
Am I The Only One That Thinks Auto Insurance Rates Are Freaking Ridiculous?!
Flustered About Auto Insurance?
Auto Claim DENIED…WTH!!!
How much auto insurance do I need?
Do all states have a mandatory auto insurance minimum?
How do I get the best policy value for my money?

Health Insurance

Health Insurance Decisions
Do you need health insurance?
Indemnity Plans
Health Insurance Dissected…Lighten Up!
5 Things Every Health Insurance Policy Holder Needs to Do Now
Tips for Working with Customer Service
What are the most popular types of health insurance plans available?
What exactly does my health insurance premium pay for?
What is a main hospital plans?

Home Insurance

Renters Insurance Stripped
Whose Home Insurance is Responsible?
Umbrella Insurance
Expecting Home Insurance Premium Increases
5 Steps Home Insurance Policy Holders Must Take Now
What Home Insurance doesn’t Cover
Do I have to have home insurance?
How do I get the homeowners policy that gives me the best value for my money?
What if someone is injured on my land?

Life Insurance

Don’t Screw Up Your Life Insurance!
The Case for Term Life
Lying to Insurers
It’s Time To Stop Bashing Life Insurance Coverage! Have You Got A Better Solution?
Should You Sell Your Soul To The Insurance Company In The Pale Moonlight?
Do You Need a Trust?
How much life insurance do I need?
How do I get a life insurance policy that offers the best value for my money?
Should my spouse and I have separate life insurance coverage?

The Benefits of Paying Your Premiums Annually

Every year, each of us gets a choice to either pay our insurance premiums by month, quarter, or year. Whether it is your life insurance policy, auto insurance policy, or home insurance policy – you get that bill every year with a large amount to pay in full, or itty bitty amounts to pay monthly.

I don’t know about you, but when I compare the big amount to the little monthly amount, it can get pretty tempting to just pay the small amount each month rather than take a big chunk of change out of my savings account to pay the annual amount. After all, it makes me feel better to have a high amount in savings and taking a chunk out for each insurance policy can make you a little sad.

But there are two important reasons why you need to reconsider this stance:

  1. A single annual premium payment saves you money: When you pay your insurance policies with installment payments, the insurer usually tacks on a small fee for the pleasure of being able to do so. While this additional fee might not be much per installment, it adds up over the course of several years.
  2. You have less chance of lapsing: When you pay your insurance policies by installment, you have that many more opportunities to forget to make a payment, or to make a payment late, and lapse your policy. Why give yourself that opportunity?

If you pay by installment, you might just want to reconsider that stance so that you save just a little bit more money on your premium and so that you have less risk of being late and losing your valuable coverage.

October 18, 2010

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