Have you ever wondered how changes in payment structures could affect your insurance premiums? Well, you’re not alone! In this video blog, we’re diving into the evolving landscape of insurance payment options, shedding light on how the traditional yearly or six-month payment plans may no longer be business as usual. While yearly and six-month pay-in-full options remain, the real shake-up has occurred in installment plans. Interestingly, about 70% of insurance companies are now tweaking their installment plans, requiring a larger upfront payment to kickstart the policy. Whether it’s a six-payment plan over six months or a twelve-payment plan over a year, you might find your first payment now being a significant chunk—say, 30% of the total premium—followed by evenly spread amortized payments. Join us as we unravel these changes and explore how insurance companies are adapting their billing practices to keep up with the times.
In this informative video, we’ll navigate through the various structures that insurers are adopting. Some are introducing unique plans, like a five-payment option with upfront collection of first and last month’s payments, leaving the sixth month payment-free. What’s even more interesting is that while some companies apply this approach across renewals, others are implementing it exclusively for new clients purchasing a policy. So, if you’ve ever wondered about the nitty-gritty details of insurance payment plans and how they impact your wallet, stick around—we’ve got you covered!
Our owner and founder, Pat Brennan, explains more. Check out the video below!
How Are Some Payment Structures Being Impacted? – Entrust Insurance, St. Clair Shores
Video Transcription
“Most commonly, you would have a yearly pay or a six month pay in full, you just pay the whole thing off. Those are all still available, where the billing change has been impacted on the installment options-not all but actually, probably 70% of companies have started requiring a larger down payment to start the policy. So they may still offer six payments over six months or 12 payments over 12 months. But they may now say, Hey, your first payments gotta be 30% of the total premium. And then the remaining payments are just amortized out. Some companies may only offer a five-payment plan, where they collect first and last month upfront, you have four payments and then the sixth month there is no payment. Some companies are doing this renewal after renewal and some companies are doing that only if the client is a new client purchasing a new policy. And then upon renewal, they will even out an offer you know equal installments across the board.”
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