That's so 2024 too .
Paying insurance bill in one lump sum or in payments and letting money earn interest.
- Thread starter atikovi
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Phila suburbs
I used to pay my autos every 6mos and homeowners every year in full. Then I saw they offered a monthly payment plan and it only cost an extra $4 admin fee and since the insurance is so expensive - I went monthly and it saves me money overall because the cost of the insurance in my bank account nets me more in interest then the small fee.
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Yeah all of them did that to me….lizard (car only), mayhem (car and home), AIG. I mean they are all bad period, but Patrick Mahomes seemingly doesn’t charge more for installments and credit card
I do the same thing, this way I'm not reminded as much of how much I hate them over the course of the year.
Imagine a scenario where you forget to pay one month, or the check gets lost in the mail, or the electronic payment glitches. Now imagine that’s the same month lightning strikes the house and burns it to the ground. Is the $29 worth that?
If it were me I would just write the check and be done with it.
If it were me I would just write the check and be done with it.
Not to me...Debt is when you owe money interest or not....
I pay the full premium at once, and I'm done with it.... And at the risk of sounding like a commercial, I just switched my auto insurance on 3 vehicles, from The Hartford to Progressive, and saved over 50%!
That easily paid for my new 1911, and extra magazines!
That easily paid for my new 1911, and extra magazines!
JTK
$100 Site Donor 2025
I've only ever payed my homeowner's insurance premium in one payment, but mine is more in the $1000 range for the year.
For the 5 vehicles in my name, I pay the car insurance monthly. I would save about $40 for the year paying in full IIRC.
For the 5 vehicles in my name, I pay the car insurance monthly. I would save about $40 for the year paying in full IIRC.
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I have a calendar and pencil in when a major bill is due, plus they also send a reminder when it's due.
In the case of insurance you would be paying as you use it if doing the installments vs pre-paying for 6 months or a year in advance. Not really debt, if you cancel you don’t own more to them.
I pay the homeowners all at once and it stinks. The auto is every 6 months. I need to see what the installment payment terms are.
Do they provide you with all 12 months worth of coverage, on day one? Or is the service that they provide (e.g. coverage) spread across a 12 month period?
I pay for coverage as I go, which is also how they provide it to me, and don't pay extra for that ability. Nor should anyone else.
Yeah, it is debt until the moment you cancel. Which likely isn't happening. But it is debt.
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Back when I had two home equities on the house, main, and secondary (the first lien position paid off the primary mortgage at a lower rate and no title insurance nor closing costs), the first was auto pay required, second manually paid.
On the second had an unusual scenario.
Say the statement cut 4/28 with a due date of 5/23.
I made a payment of 4x the payment due ($1,000 when about $230 due) on 5/1.
The payment went to principal only (I did not choose that I always paid more than required), and when the June statement cut there was a past due amount. Rather than argue I made an even larger payment of $2,000, to clearly emphasize that I don’t typically pay late.
To your point, when manual payments are made, anything is possible. With Travis Kelce insurance, it is setup to automatically charge the Cc each month…
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Of course debt is money owed. But why would you owe money if you did not get something (an asset) for the debt?
If you pay in full and cancel you get a pro-rated refund. And you still need insurance, so you are just switching companies, right?
I have no option to pay my home insurance out of pocket (escrow) because I have a USDA/rural loan, and haven't had it long enough is what the lender tells me. I financed the home through my credit union and they quickly sold it to another lender. Despite having some 40%+ equity, the lender won't budge.
I was always in the camp to avoid installment fees by paying semi-annually in full for car insurance, but given my highest interest earning savings account is >5%, I might have to redo the math.
I was always in the camp to avoid installment fees by paying semi-annually in full for car insurance, but given my highest interest earning savings account is >5%, I might have to redo the math.
