I do not like anyone going into my bank account.

by Guest » Sat Jan 08, 2011 09:59 pm
Guest

I do not like anyone going into my bank account. But my insurance company says I can get my rates cheaper if I allow them to. Why?

Total Comments: 3

Posted: Sat Jan 08, 2011 09:59 pm Post Subject:

I will assume you are referring to having your monthly payment electronically withdrawn from your bank account. Many insurance companies offer discounts if you allow this because it significantly decreases the chances your policy will cancel for non-payment.

Posted: Sat Jan 08, 2011 11:44 pm Post Subject:

What Mike said.

But in addition, the insurance company then needs to spend a lot less money getting their customer to pay (letters, phone calls, admin costs, etc.). It's worth it to them to give you part of what they save as an incentive.

Posted: Mon Jan 10, 2011 05:26 pm Post Subject:

Some insurance companies have statistics that show those policyholders that allow for EFT have less claims costs than those that don’t.

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