Not many of us can pay that much all at once. I would love to pay 1 time and be done for a year
Paying insurance bill in one lump sum or in payments and letting money earn interest.
- Thread starter atikovi
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YUP....
Debt is a tool. Use it wisely and you drive the nail. Use it carelessly and you smash your thumb.
And how. My mother God rest her soul taught us well. If you can't afford it don't buy it, which also meant if you took a loan make **** sure you can pay it back.
Everything financial in the world is about risk vs reward over time. Sometimes you win, sometimes you lose. Sometimes, it is an emotional decision instead of a financial one.
At least at the current interest rate and home price it makes sense to just sell and rent, but then you have to either give up customizing your home however you want or being forced to move if the landlord wants to take it back.
Full coverage from day one. State Farm.
Your dear Mother should have taught personal finance around here. Back in the 90's there were so many beautiful German cars in our parking lot. Now most(?) of them are selling their homes to get by, and many of them have no equity cuz they sucked it out to shop at Macys and Nordys. Gotta look good in that shiny BMW 3 or Boxster. Now they have squat.
Those of us who drove used Hondas and strippie Toyletta PU are sitting pretty. Of course they have a stuffed closet with $200 blue jeans that they don't fit in...
No mention of a discount for paying in full.
Right. But the insurance companies invest your premium dollars so getting them locked up early is why they typically charge for installments.
Payed off two houses and pay insurance a long is possible. If there is $50-60 difference i don't care I'll pay the full boat. Don't have to keep track of the next payment and who to say after 6 months they won't jack up the premium. Worked with men that loved their toys, drive fancy cars/ trucks, utv, guns and boats. Rather enjoy if i or the wife wants something we buy it. Have put money into the market through a advisor made more money in the last three years than every before.
Debt is a tool... Like a hammer hanging over your head just ready to fall on you....
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There are no premium increases until the next period, as insurance is a prepaid expense. You can have an accident day 1 of the coverage period and it would not adjust until the next period.
I am not sure if an insurance co is allowed to drop immediately in the above, or if they do in practice, but payment has nothing to do with locking rates.
Imho what you observe as a symptom is fact. However, the paid up front, being the reason, is a non sequitur.
One thing has nothing to do with the other. Once the policy has been issued, they can't raise it's price just because you make payments.
I’ve been making payments on my premiums for like’ ever. Seems like every time I get ready to make a full premium payment or at least 3 vs. 6 payments, some life-bullet comes along and throws me back to first base. 
I never could have purchased my home in Silicon Valley; now it's paid off, thanks to great loans. The value is off the freakin' charts. Now the 90 Vette I bought new, but couldn't afford, cost me a bundle in the year I owned it.Debt is a tool... Like a hammer hanging over your head just ready to fall on you....
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I don’t think that anyone can afford to pay cash for a home outright. If they could, it rarely is from a 9-5 job. I mean what’s his name Jack Doherty, he bought a 15 mil dollar home at age 20 from YouTube. This is still a phenomenon to me. I used to say I don’t get Ryan at Ryan’s toys making more than Tom Brady at age 8. But Ryan at 28 mil is way down the list today. He used to be #1.
Generally speaking the older I get, the more I want to not have to borrow. But our next car is almost $100k with tax. If I’m smart we don’t get it haha
By paying in installments, you are not incurring debt. Under accounting, when you pay an insurance bill for the upcoming year in one lump sum, the unamortized balance for the remainder of the year is considered an asset, because, if you cancelled the insurance, you would be refunded that amount.
So by paying in installments, you are not incurring debt. Rather, you are reducing your unamortized balance that is carried. That is considered reduction of an asset.
Based on your math, the installments sound like the way to go. However, the installment charges may not be tax deductible, but the interest income you receive is likely subject to income tax.
So by paying in installments, you are not incurring debt. Rather, you are reducing your unamortized balance that is carried. That is considered reduction of an asset.
Based on your math, the installments sound like the way to go. However, the installment charges may not be tax deductible, but the interest income you receive is likely subject to income tax.
