Pay Plan Changes Implemented
By Lisa Kae Johnson, Vice President of Underwriting
1st Auto recently implemented some pay plan changes to our current lines of business. Effective March 1, 2022 for new business and May 1, 2022 for renewals, pay plans that are now available for all lines of business are:
- Direct Bill and Automated Full Pay: Includes a 10% paid-in-full discount
- Direct Bill and Automated 2 Pay: This is not a semi-annual payment plan
- Direct Bill and Automated Monthly: This is now a true monthly payment plan
With these changes, the following pay plan options have been eliminated and currently policies on these pay plans will roll into the monthly pay plan option:
- Direct Bill and Automated 3 Pay
- Direct Bill and Automated 4 Pay
- Direct Bill and Automated 10 pay
Additional changes are:
- Policyholders will no longer be able to choose their due date. Due dates always will be the effective date of the policy.
- Invoices or automated pay schedules will no longer generate with the renewal. They will be sent 15 days before the due date.
- Renewal premiums will no longer be paid in advance and will be due on the renewal effective date.
- If policy is on a direct bill monthly pay plan, the due date will be 30 days after the previous due date. The premium will not always be due on the same day each month.
For an updated billing guide in a PDF format, click here.