I budget the amount I need for each yearly payment per a month within the program. I have also added all bills that I pay yearly including HOA, property taxes, membership fees, etc. Since moving to budgeting with YNAB, I now budget all of theses things within the program. However, they would charge monthly fee’s for being able to pay monthly. I used to do set up so that I would pay monthly payments for almost all my car insurance, life insurance, etc. I was very happy with State Farm, but couldn’t pass up that kind of savings. Saving $1800 a year now means I don’t have to worry about the SFPP (though pay-by-the-month is standard with Liberty Mutual). In 8 months, I’ve been very happy with both new companies, including the process of obtaining online quotes and enrolling for coverage. (Notably, he was very helpful even on the way out, with confirming that I was signing up for equivalent coverages to what he had provided me.) Fast-forward to now and I’m now with GEICO (auto) and their partner Liberty Mutual (homeowners for GEICO Customers east of the Mississippi) and have cut my ~$3,600 annual insurance premiums to a bit less than half that amount! I had great service from my SF agent over the years, and gave him a chance to justify the rate difference or talk me off the ledge, but he could not. Didn’t use SFPP due to the fees, but here’s the REAL savings…when we got our first full-year premium for a new car (2012 Outback), I had sticker shock and started shopping. I too was a long-time SF customer (30+ years, since I got my driver’s license) for both auto and home. We signed up and look forward to the added simplicity. When you cancel one policy and keep others, mixing all the payments together in this manner can make the refund math a bit confusing. If you wanted to cancel the auto-pay, it may not happen immediately and you may have to wait an extra month. This could be a pro for some people, but I know that others like to keep complete control when paying bills. However, even without the float, a dollar a month may be worth it to you in exchange for simpler budgeting. If your bill is large enough, then the free float that you’re getting may offset this $12 a year (even with today’s piddly interest rates, assuming you use a high-yield savings account). At least in my area, SFPP costs $1 per month for a monthly payment plan. I don’t use this, but if you find it convenient you can select your specific payment due date each month (any day except 29th, 30th, or 31st). This is good news for those earning credit card rewards. SFPP allows you to pay with a recurring charge on any Visa/Mastercard (no American Express). You can use a credit to pay most bills already, but some auto-pay plans require a linked checking account. If you’re already paid up then you have to wait until renewal to start an SFPP. So you’re gaining some additional float time on your money. If your policy is renewing today, then instead of paying $1,200 upfront now, with SFPP you pay $100 per month spaced out over the next 12 months. Let’s say your total bill is usually $1,200 once a year. We chose monthly as that is how we visualize our spending. With this plan, all your insurance bills get averaged into equal monthly, quarterly, or semi-annual payments. I’m sure that most other major insurers have a similar program. When I asked about payment options, they told me about the State Farm Payment Plan (SFPP). We use State Farm for all of these insurances due to our positive claim experiences in the past and their multi-line discount. Our homeowner’s insurance is due annually (we don’t use mortgage escrow anymore), life insurance is due annually, and auto insurance is due semi-annually. One of the headaches for budgeters is dealing with large lump-sum payments like those for home/car repairs, healthcare bills (human repairs), and home/car/life insurance. MMB and I have kept a closer eye on our monthly spending patterns. Ever since we started cutting back our work hours in order to share childcare duties, Mrs.
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