Cheap Home Contents Insurance — More Expensive Rates Than You’d Spend If You Choose To Pay Annually
December 13th, 2009
Choosing to pay your premiums monthly attracts passing off cheap home contents insurance quotes that you’d attract if you choose to pay annually. This is because sending you 12 payment notices by mail each month costs your insurance company much.
If you include the fact that each check you make out is considered a transaction by their bankers, you’ll see that they still pay some more on transaction fees for each check you pay in. 12 checks mean 12 transactions which mean 12 separate transaction charges. And as with everything else, it’s you the customer or policy holder who bears that cost.
You will get reasonable savings if you choose to pay annually. What you will save could be as high as 8.5% of your total monthly payments over the course of just a year.
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