OAI Informs Consumers About Auto Insurance Fees

RANCHO CUCAMONGA, CA, March 08, 2011 (Press-News.org) When purchasing anything--whether it be a car, phone or Internet service, or an insurance plan--it's important to consider whether there will be any costs beyond the sticker price. In a new FAQ published on OnlineAutoInsurance.com, the site's writers help consumers get a full view of the cost of a policy by discussing some of the types of fees that typically get tacked on to the price of coverage. In some cases, certain options can add significant costs.

For example, although a consumer may have tracked down a low down payment auto insurance policy with monthly payments, it could end up costing him or her more in the long run to pay for coverage this way than it would have been to purchase it altogether up front. One reason for this is that insurance companies will regularly extend discounts to motorists who pay in one lump sum, but it is also because of processing fees that get added on to policies with monthly payments. In places like Massachusetts, insurers can charge between $0 and $32 for installment plan fees, and others charge a percentage of the outstanding premiums.

Source: http://1.usa.gov/gg2IRm

In addition to clarifying the cost of billing, consumers should also find out at the initial purchase of an insurance policy whether there are any fees for canceling protection before the coverage period is up.

Motorists who acquire financial protection through a broker can also expect to be charged a broker fee upon purchase of a policy. These fees are often negotiable, and can be well worth the cost if the broker is able to find a cheap plan.

Finally, motorists who want to change the specifics of a policy--by adding or adjusting coverage--in the middle of a policy period may be asked to pay what are known as endorsement fees.

To access the full, more-detailed FAQ, readers can go to http://www.onlineautoinsurance.com/pay-monthly/car-insurance-no-down-payment/ where they can click on the "Questions" link located on any page on the site to go to the full FAQ library.