An installment fee is the small charge per payment you make on your home insurance premium. The fee covers the service cost of processing the additional payments on a monthly, quarterly, or bi-annual basis. Almost every insurance company charges this fee unless you pay for your policy in full each year.
With Kin, you’ll notice you save a little more overall if you don’t pay for your policy in installments. That’s because California is charged $7 per installment payment. On Florida homeowners insurance, there’s a $3 charge per installment.
The tiny installment fee doesn’t seem like much at first glance, but it does add up a little. If you choose a 4-pay plan for your California home insurance, for example, that’s $21 extra in processing fees (you don’t get charged for the first installment).
The best way to avoid these fees? You can choose to pay for your annual premium in full. While breaking the premium up in installments may be easier to budget for in the short term, it’s important to note that it doesn’t save money in the long run.
Insurers charge installment fees for two main reasons:
Some policies include other types of servicing fees, and these vary from insurance company to insurance company and state to state. In the spirit of full transparency, here are our fees for our California homeowners insurance policies:
Our fees are never hidden. If you have any questions, please contact us at firstname.lastname@example.org. We’re an open book!
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