Make a Payment

Customers make payments directly with insurance company they are insured with.

For clients that are set up on auto-payments (EFT – Electronic Funds Transfer):

Most insurance companies set clients up with automatic payments that either come out electronically from client’s credit/debit card or checking account. You can change the payment method at any time; however, it usually takes ~5-7 business days for the change to take effect. Calling a day or two before your payment is set to come out and requesting a change of a credit card/checking account insurance companies have on file is usually not sufficient amount of time for insurance company to change your payment method. This process is not instant.

Most insurance companies offer a discount if your payments are set up on EFT. Your auto insurance monthly payments usually include the billing fees and every company is charges different amounts. Here is an example of a billing fees that are included in your monthly payments (varies from company to company):

  1. Direct bill (you receive the bill and make payments manually by calling in or online) $12;
  2. Auto payments from Visa/MC: $8
  3. Auto payments from checking account: $4
  4. Paid in full: $0

Insurance companies charge billing fees to offset the cost of processing your payments. 1. Direct bill is the most expensive because insurance companies need to hire employees that will check mail, open it, process it, answer your calls and process the payments. It increases the cost of doing business for them; therefore, they charge the billing fees for clients that choose to make payments manually. 2. Auto payments from Visa/MC incur costs from Visa/MC since they charge the merchant (insurance company) a percentage of each transaction amount. 3. Auto payments from checking account are the lowest cost for insurance company; therefore, the fee is typically much lower. 4. Paid in full policies eliminate all the fees for you, so if you can pay your policy in full,- do it. Also, let’s say you’ve been making monthly payments for several months and can afford to pay the outstanding balance of your insurance in full. By paying in full you will eliminate the billing fees for the rest of the insurance term since insurance companies bill you for each payment but if you paid in full and there are no more bills coming, than there will be no more billing fees.

For clients that make their payments manually:

Most insurance companies can take payments:

  • online on their website;
  • via phone with customer service representative or automated system;
  • by mailing a payment directly to insurance company.

All available payments options are listed on your billing statements or invoices. Making your payments manually adds the biggest billing fees that are already built-in into your payments. You can reduce those fees by switching to auto payments (EFT) or eliminate them entirely by paying your policy in full.

You can always Google: “[insurance company name] make a payment”

or you can contact our agency, Perfect California Insurance Agency, at 888-8888-212 and we will be happy to assist you.