Why You Should Pay Your Renters Insurance Premium Annually

When purchasing renters insurance, many insurance providers give you the option of paying your premiums either monthly, biannually, quarterly or annually. Paying an inexpensive sum each month may seem like an attractive option, but it can actually cost you more in the long run. Why? There are two main reasons.

1.       With many insurers, you’re charged an administrative fee each time you make a payment to cover the company’s processing costs. So the fewer payments you make, the less you’ll have to pay in fees.

2.       A lot of people prefer the ease of automatic payments. However, if your checking account balance is too low when the premium payment is deducted, you could face costly “insufficient funds” charges. The fewer payments you make, the less chances of this situation presenting itself. (Another option would be to pay manually, either electronically or by check, so you can check your balance before the deduction.)

The thought of paying for a whole year of coverage at one time may sound overwhelming, but renters insurance is often much more inexpensive than people think. In fact, a standard renters insurance policy typically costs less than $20 per month or $250 per year.

The ease of a one-and-done payment option, especially on such an affordable policy, makes it well worth it to save up enough money to pay your premium annually. For even more savings, talk to your independent agent about combining your auto insurance with your renters policy for a bundle discount.

Ask about your payment options today. Call La Familia Insurance at (888) 751-7511 for more information on Dallas renters insurance.