Annual vs. Monthly Renters Insurance Premium Payments
Individuals with renters insurance know that it’s a relatively inexpensive insurance policy, yet it offers lots of valuable protection. For an average of $20 per month or $200 per year, you get both property coverage to protect your belongings and liability coverage to protect you against the expense of someone getting injured within your rental unit.
So what’s the difference between paying annually vs. monthly? Most insurance providers charge an administrative fee each time you make a payment in order to cover their own processing costs. This fee may be minimal with electronic payments, but can be as much as a few dollars if you pay with paper checks. This may not seem like a high sum, but months and years of these fees add up to quite a significant amount of money. Therefore, the fewer payments you make per year, the less money you waste. Ask your independent insurance agent about annual, biannual or quarterly payments to avoid paying a fee every single month.
However, even if your budget only allows you to make monthly premium payments, the processing fee is still worth it to own a policy that protect all of your assets. If you choose to pay monthly, consider your options. Do not set up automatic payments if your checking account balance hovers low enough to zero to put you in danger of costly overdraft fees. If that’s the case, you may prefer manual payments.
Your independent agent can discuss your payment options with you to help find the best solution for your needs.
We’ve here to help. Call The DeLuca Agency at one of our locations for more information on renters insurance.