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Benfits of Electronic Funds Transfer

If you are like me, then you are probably on a budget. That being said, who wouldn’t want to save money if they could? Did you know that almost all insurance companies offer a variety of ways to pay your insurance each month?

Like most bills, insurance is paid predominately monthly. However, some people do opt to pay annually or semi-annually. For the majority of us who pay monthly, several options are available.

Ways to Pay for Insurance

Many companies allow customers to pay via credit card, debit card, cash, or through your bank using a routing and account number. Some companies charge for these services. However, most do not.

I have found that the easiest, most efficient way of paying for my automobile insurance is through Electronic Funds Transfer, also known as EFT, which is the transfer of funds from your insurance carrier for premium payment.

EFT can be done through your credit, debit, savings, or checking accounts.

More About Electronic Funds Transfer

Aside from the convenience of not having to write out a check or call to make a payment, EFT is also an excellent way to avoid the dreaded late fee associated with simply forgetting to pay your bill on time. It also eliminates the monthly service charge you would otherwise have to pay.

For me, it’s a way to ensure that my insurance is paid every month on the due date. And more importantly, being on EFT saves me money, which helps with my budget. Most insurance carriers offer a discount for paying your insurance this way because it saves them time and money.

Be careful, though, and remember that EFT is an AUTOMATIC withdrawal from your account! If you are on EFT and, for some reason, need to change your withdrawal date, make sure to give your agent enough time to change the date for you.

Many insurance carriers need at least three to five business days to change the withdrawal date. Also, remember that if you are switching banks or have closed your account, you must let your insurance agent know immediately so that this information can be updated, failure to do so can result in your policy being canceled if your policy premium is not paid in time or funds are not available.