How often do you pay insurance?

Answer 1

The frequency with which insurance premiums are paid is initially determined at the inception of the policy; the insured usually has the choice of frequency. Options typically include monthly, quarterly, semi-annually, or annually.

In some cases, premiums can be financed through a separate entity that is called a premium finance company. In those cases, the insured pays not only the premium, but a finance charge which is an interest rate calculated on and added to the total premium. The finance company usually pays the insurer in full up-front and the consumer pays periodic amounts to the finance company. If payment is not made, the premium finance company will request the insurer to cancel coverage.