Cheap Home Owners’ Insurance — More Expensive Premiums Than You’d Pay If You Choose To Pay Annually
You’ll get cheap home owners’ insurance rates if you choose to pay your rates yearly and not monthly. Your insurance carrier sends 12 notices for monthly payments as opposed to one for yearly payments. This increases their overhead.
The cost increases if you add the fact that they pay transaction fees for processing each check you send them monthly. 12 checks mean 12 transactions and will attract Twelve separate fees.. And as with everything else, it’s you the end user or policy holder who bears that cost.
Therefore, you’ll get lower rates if you opt to pay your premiums yearly. You could save up to a month’s premium within a year.
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