[Christi]

Word of warning… I usually pay our insurance premiums up front for the discount… well our carrier went out of business last year. Fine, we found other coverage and canceled on Oct 31. Here we are in April… the state insurance folks have taken over refunds… and we are still waiting. Five months later. Luckily, due to our Fi nature, we have the money but this whole time we are over here paying home and auto premiums to our new company still waiting for more than 6 mos worth of a premium refund. This is absolutely ridiculous and was not worth the $10 discount for prepayment.

[Shamil]

This is similar to the folks that chase the 0.005% higher yield at bank of Guyana. Not knocking your process, I pay in full also, but I make sure the banks and insurance companies I use are highly rated. More important than a few dollars in savings.

[Channing]

That’s why I pretty much never prepay, I just put the money aside. A company going out of business is obv an extreme example but you also lose leverage if you have an issue once you’ve paid up front. Companies get a lot less motivated to fix something once they have your money and good luck getting a refund that’s not a “credit”.

[Roxanne]

Eeeeek I prepay for everything possible but never really thought of this issue.

[Author]

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