THURSDAY, DECEMBER 15, 2022
Car insurance is a policy that you must always have while you are a driver. If you are the primary policyholder, then you could enjoy significant perks and savings from your insurer. A couple of the benefits that most insurers offer are automatic payments and automatic policy renewals. These are more than just ways for the insurer to make sure they keep your business. They are great ways for you to optimize your coverage and ensure it always works you. By enrolling in these options, you might even be able to save money on your rates.
What are Automatic Payments & Automatic Renewals
You have to always keep your car insurance active. This means paying your premium and renewing or buying new coverage when a policy expires. To make it easy on you, your insurer might offer you the option to automatically pay & renew your policy.
- With automatic payments, you set up a schedule to pay your premium. You can then provide your insurer with a credit card or bank account information. When your payment date arrives, the insurer will automatically charge your account. You won’t have to worry about making a payment manually on the due date.
- Automatic renewals occur when you give the insurer advance permission to renew your policy on its rollover date. If you plan to keep the same coverage year over year, then your policy will simply renew and continue to cover you. You do not surrender the right to make changes to this policy in the meantime, however.
If you ever fail to pay your premium or to renew your policy, then you run the risk of going uninsured. Any gap in your insured time leaves you without protection during any drives you take in the moment. As a result, your driving risks and insurance risks increase significantly. The risks might be so great that when you try to re-enroll in coverage, insurers might decline your application or significantly raise your premiums.
The Perks of Autopay and Autorenewals
It’s often much easier for both carrier and policyholder if the buyer automatically pays and renews their car insurance.
Primarily, these benefits reduce the risk of coverage lapses and helps the policyholder avoid the hassle of multiple due dates. However, it might even qualify them for cost savings. Because of the lowered risk of automatic policy management, many insurers opt to pass the cost savings along to the insured. So, policyholders who take these options often can receive a premium discount. Convenience coupled with cost savings is often a win-win situation for most people.
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