Online Insurance Quote — Yearly Premium Payments Will Save You Much

Electing to pay your rates monthly leads to a higher online insurance quote than you would get if you choose to pay annually. An insurer is compelled to send you 12 notices for monthly payments as against one for yearly payments. This costs them more.

If you add to the fact that each check you cut is seen as a transaction by their bankers, you’ll see that they still pay extra on transaction charges for each check you pay in. 12 checks are 12 transactions which mean 12 separate transaction charges. And, believe it or not, these additional overheads are eventually built into your rates.

So, you will attract cheaper rates if you choose to pay your premiums yearly. What you’ll save could be as much as 8.5% of your total monthly premiums over the course of just one year.