At our office in Oklahoma, we’ve been going through some training on the different companies that we represent here at RCI Insurance. For our clients that have policies for themselves personally, we usually have a different company selection than the companies we offer to our clients that have their commercial insurance with us. To start our training, we’ve picked one company to review. Even though we have several companies that we sell insurance for, sometimes they require different information or their company procedures are slightly different from another company’s guidelines and rules. Thus we decided to review our most used companies one at a time and make sure we are all aware of what that company offers and what guidelines we must follow. This week, we’ve been going over a company that we write Oklahoma Auto, Home, Boat, and Umbrella policies.
What we went over today concerned our clients and billing. Ah, the bill, the part everyone hates! However, companies now days are making it so much easier for clients to pay their insurance bill. These were a great refresher as well as a learning experience too. Did you know that your insurance company will usually have multiple options for you to pay your insurance premium?
- Electronic Funds Transfer (EFT)
- Monthly – Each month you can set up your payment to come directly out of your checking account. You don’t have to mail in a payment (it’s a hassle sometimes to get stamps!). Plus the fees for your monthly payment are typically a little less with direct payments.
- Lump– Instead of making your payment each month, you set up your premium to be paid in full at renewal. Again, it would come directly out of your checking account and there wouldn’t be any forgetting that your insurance is due, it would be automatically drafted. When paid in full, there are no payment fees attached to your total premium.
- Recurring Credit Card (RCC)
- Monthly – Similar to an EFT monthly payment, but instead of coming out of your checking account, you can set your payment to be charged to your credit card. One more way to rack up some mileage points!
- Lump – This option is just like the EFT only it’s your credit card instead of your checking account. Again, this way you avoid any additional fees.
- Insured Pay
- Lump – The company will mail you a bill. When you’re on the lump payment plan, you are expected to pay the premium in full. With this option, you can mail in a check or money order, call the company’s billing department directly and make a payment over the phone, or write your checking account or credit card information on the billing slip and mail in your payment. Once again, with this pay in full option, you avoid the most fees.
- Monthly – Each month the company will mail you an installment notice. But this option comes with the most fees added to each payment. Those fees after a while can really increase your premium. However, sometimes this is the only option that may work for you.
- Sometimes it’s just not going to work to get to the post office to buy stamps. Instead you go see your agent at their office and they go to the company’s website and submit your payment information on-line. You would have to have a credit card or checking account in order to use this option. Plus, there may still be some fees applied to your monthly payment. However, with the paid in full, chances are there would not be a fee.
- Mortgage Bill
- This option is for the Homeowner’s Insurance policy only. Each year your mortgage company can mail the company a check from your escrow account. This way you don’t have to worry about the hassle of remembering your insurance payment and usually the money for your insurance is included in your house payment.
- Account Linking
- This option allows you to combine the bills for your Auto, Home, Boat, and Umbrella Insurance IF all your policies are with the same company. This is a fast and convenient way to pay all your insurance with one payment instead of multiple payments.
Talk about lots of options. When setting up your insurance policies, find out what option works best for you and your family. What works for one person, may not work for another person. Just make sure you don’t forget to pay your insurance! To get a policy back enforce could end up getting you where it hurts the most, your wallet.