Service Charges

Most insurance companies will offer payment plans. A payment plan is necessary if you are not paying in full at the time of placing your insurance.

Most companies will charge a fee if you want a payment arrangement set up. It can be a flat fee, such as $15 payable with the first of three payments or it could be 3% to 8% of the total premium.

Another type of fee is when the insuring company charges a flat fee at the time of issuing a policy. This fee will be charged year after year. This fee can range for as little as $25 to $350 or more.

Some agents or brokers will charge a fee for their services. If a broker or agent is charging you a fee then this must be disclosed to you. There should not be any hidden charges.

If you are setting up a finance contract then read the terms over carefully and pay close attention to any reference of a service charge. Ask questions.