Affordable Homeowners Insurance: Choosing To Pay Your Rates Monthly Leads To Higher Rates

August 28th, 2009 by admin

 

Make sure you don’t make this mistake as you look for affordable homeowners insurance rates: Electing to pay your premiums monthly leads to higher rates than you’d spend if you decide to pay annually. An insurer is compelled to send you 12 notices for monthly payments as opposed to one for yearly payments. This costs them more. 

If you include the fact that each check you send is seen as a transaction by their bankers, you’ll see that they still pay some more on transaction charges for each check you pay in. They pay transaction charges 12 times instead of once a year for monthly premiums. These and other charges so incurred by your insurance company are eventually borne by you, the insured.

So, you will attract cheaper premiums if you decide to pay your premiums yearly. The actual amount you could save might differ but expect to save up to a month’s premium worth with some insurers if you choose this option.

 

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