Homeowners Insurance Rate — Electing To Pay Your Rates On A Monthly Basis Results In Higher Premiums
Yearly premium payments will save you a lot and make you get a lower homeowners insurance rate as against monthly payments. An insurance carrier is compelled to send you 12 notices for monthly payments as against one for yearly payments. This costs them more.
As if that was NOT enough expense, each check they get attracts a transaction fees too. 12 checks mean 12 transactions which attract 12 separate transaction charges. And as with every other thing, it’s you the client or policy holder who will be responsible for that cost.
You will get reasonable savings if you begin to pay yearly. The actual amount you could save might differ but you may be able to save up to a month’s premium worth with some insurers if you choose this option.