The monthly installment trap: installment fees and payments
Most drivers opt for monthly payments instead of paying their car insurance premium upfront.
It sounds easier… but in reality it costs you more.
Insurance companies often add monthly installment fees or “service fees” just to split your payments.
These fees may range from $5 to $12 per month.
This means you could be paying an extra $100 each year – without even realizing it.
And it doesn’t stop there.
Late payment penalties
If you miss the payment due date by even one day, you may be subject to a late payment penalty of $25 or more.
And what’s worse? It could affect your future car insurance rates and make your premium higher.
But these small fees are nothing compared to what happens if you try to cancel your insurance policy…
Turn to the next page to see the fees that could cost you hundreds of dollars right away.
