When you buy insurance for your Rochester, MN home, you may wonder how often you’ll need to make payments. The answer is that many insurers will let you choose to pay monthly or yearly. This is a significant decision with multiple consequences.
Most insurance companies will charge you less per year if you pay on a yearly basis. They do this because they save money by processing only one payment rather than 12. Annual payments might also help you cut spending on postage and checks.
When you pay yearly premiums, you won’t need to spend as much time making or keeping track of payments. Fewer transactions result in a smaller risk of overdraft fees, record-keeping mistakes and lost or delayed payments. This helps to ensure that coverage remains in effect.
A yearly payment is sometimes the only option. Certain mortgage lenders demand that buyers prepay for a year’s worth of coverage when they purchase homes. If desired, owners can switch to monthly payments after the initial year.
Nevertheless, there are also benefits to be gained from paying by the month. You won’t have to save up as much cash before obtaining or renewing coverage. It’s also easier to switch insurers at any time. There’s no need to request a large refund if you cancel mid-year.
If both options appeal to you, look for a compromise. Some insurers accept quarterly or semi-annual premiums from their customers. Safechoice Insurance Agency can help you find a company that provides suitable payment options.
Our Rochester, MN agency has offered affordable coverage and top-notch service to Minnesota residents for over a decade. We independently check rates from multiple insurers and identify the best options for our customers. To find home insurance that fits your budget, please contact Safechoice Insurance Agency by dialing 507-280-9282.