posted on January 09, 2012
Many people use on-line banking to pay bills these days. A good thing? Often yes, sometimes no. There could be a problem if you use your on-line baking service to pay your auto insurance premium.
In general banking services will pay your bills when you tell them to, or you may have a repeating order to pay a bill on the due date. Most of the time that works fine; even if the payment is a day or two late. But auto insurance policies will actually cancel for a day or two every renewal period if the payment is made late. During the course of a policy, a day or two late is usually not a problem, but on renewal it can be. So, if you have a 6-month renewing auto policy there are 2 times every year that the payment must be made on or before the renewal date. If your banking service is in the habit of paying a day or two late, you will have a canceled auto policy for a few days twice a year! Sure it gets fixed, but the hassle is not worth the convenience. Nevada DMV gets notified, they send out those pesky post cards asking you where your insurance was and you get fined $250/vehicle. You call us to make sure DMV now knows your insurance is in force, we notify DMV that your policy is reinstated and all is well... except you still have the fine. (By the way, the DMV fines can escalate up to $1750/car depending on how many times you lapse and how long the lapses last.)
It truly isn't worth the effort on anyone's part to repeat this scenario regularly.
There are several other ways to pay your auto insurance premium that are hassle free. One is through EFT (Electronic Funds Transfer). You just ask us to set it up, give us your banking information and your payment is automatically drawn out of your account on the due date. No late fees, no problems with Nevada DMV, no pesky post cards in the mail. Another advantage of EFT payments is reduced monthly service charges and we all like to save money.
Of course, you could always pay your premium in-full at the beginning of each policy period and that would save all service charges.
You can also pay your premium on-line yourself. All of our companies have the capability of on-line payments directly from you either through bank draft, credit or debit card. If you're still mailing checks, think about it. There are more cost effective methods of paying bills.
And finally, you can come in to our office and pay here. Not many agencies allow you to do that any more. But we are both user friendly and we have a candy dish you can indulge in when you visit. Plus, we like to see you and you can get face-to-face questions answered while you're here.
In summary, if you use on-line banking to pay your bills; reconsider your auto insurance premium and pick a more effective method.