If you’re like most consumers, you probably pay your auto insurance every month. You might even take advantage of the super-convenient auto-payment option, so you can just set it and forget it.
But here’s something you should know. Some car insurance companies actually charge you a fee -- known as a “convenience fee” or an “administrative fee” -- to break up your auto insurance payments into installments.
Whether you pay every six months, every three months, or once a month, the more you divide up your payments, the more these "administrative fees" can add up. Your car insurance, which you once considered so reasonable, can wind up costing substantially more than you thought.
Be aware that there can be additional charges depending on the payment method you choose, like automatic bill pay or payment by phone.
So of course it makes sense to find out if any of these fees apply to your situation, but the best and easiest way to avoid and fees or hassles is to pay your premium up front, in full. You won't need to worry about being late on payments or missing a payment, and no fees will apply.
Trust J.K. Olivieri to keep you informed of any fees, hidden or otherwise, when you choose your auto insurance. Contact us today!