New Year's Resolution 2013: Save Money on Insurance

Written by on 12/20/2012 10:03 AM in , , . It has 0 Comments.

There are many things that are outside your control that impact what you pay for insurance whether it be a commercial or personal insurance policy.  Perhaps you slide on black ice, have a lightning bolt take out all your electronics, have an employee slam a finger in a filing cabinet, or junior gets licensed.  All of these things are outside your control, but will definitely impact your insurance premium.  One part of what you pay for insurance that is within your control is how you pay for it, and the most cost effective way to pay your insurance is either to pay the premium in full or to set-up an electronic fund transfer plan (EFT).

Benefits of paying premium in full:

  • Elimination of monthly installment fee
  • Possible additional pay-in-full discount offered by some insurance companies
  • Reduce risk and worry that policy will cancel for non-payment

Drawback of paying premium in full:

  • Upfront cost may not be possible

A happy medium to the benefits of paying-in-full and a monthly pay plan is setting up an EFT pay-plan.  EFT is a pay plan that automatically deducts your premium from your checking or savings account on a monthly recurring basis.

Benefits of EFT:

  • Lower monthly installment (typically $1 or $2 vs. $5 or $6+)
  • Possible additional discount offered by some insurance companies
  • Predictable installment amount for better budgeting*
  • Reduce risk and worry that policy will cancel for non-payment
  • Can typically pick date of withdrawal to match your cash flow
  • A few insurance companies offer EFT onto a credit card
  • Save money on postage
  • Eliminate risk that bill or payment gets lost in mail
  • Peace-of -mind

Drawbacks of EFT:

  • Must be sure that account balance can cover insurance payment
  • If change is made to policy mid-term, withdrawal amount will change.

Assuming you have a sufficient cash flow, you can see that the benefits of EFT outweigh the drawbacks.  For specifics on how your insurance package can benefit from EFT or what you need to set- up EFT, please contact your risk control specialist at Holt Proctor McBriarty Insurance, or whoever handles your insurance.  Saving money and making your life easier is a great way to start off the New Year.  Have a safe and happy 2013

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