Auto Insurance Premium Wichita Kansas KS
Reader’s Question:
Do I save money on service charges if I pay premiums in full rather than on a quarterly or monthly basis in Wichita Kansas?
George
Wichita, KS
Usually, annual premium payments are the most economical. By paying your insurance company the full year’s premium, you can avoid incurring additional administrative charges that add up with quarterly or monthly billing. Also, many auto insurance companies charge a much smaller fee if you have your premium deducted automatically from a checking account every month. So I would advise checking with your Wichita Kansas insurance company how much you can save by doing that.
By paying in full, you can avoid installment fees or “fractional premium” fees which are usually charged when you pay your annual premium in installments rather all at once. Payments usually are offered on a six-month, quarterly or monthly basis, but almost all insurance companies charge an administrative fee for breaking up the payments in smaller amounts the more you break it down, the more fees you pay.
Always be aware of the fees when paying in installments. If the fees are just minimal, it may be worth it. Keep in mind that insurance companies can cancel your policy for late payment even with just little notification, so make sure you won’t miss an installment. As much as possible, if you can pay the premium upfront, it may be wiser since it would simplify the process and probably save you a few dollars.
Tags: auto insurance
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