One of our visitors alerted us to a startling billing practice by his home insurance provider, Assurant Group, American Reliable Insurance Company, Charlotte, NC.
The annual rate for his home fire insurance is $487.00. The insurer offers payment plans for those who cannot afford to pay the full fee upfront. Payment options include: 2-Payments at $267.00 each; 4-Payments at $154.00; and 8-Payments at $131.40.
Do the math...
The 2-Payments plan isn't so nice, totalling $534.00. That's a $47 interest/payment fee. Yet it gets even worse...
The 4-Payments plan totals $616.00. That's a $129 interest/payment fee. But the worse yet...
The 8-Payment plan totals $1,052.20! That's $564.20 MORE than the original charge of $487.00! Customers who choose this option pay more in interest/payment fees than they do for actual insurance coverage!
It appears Assurant Group is manipulating their billing statements to encourage people to choose the 8-Payment plan, because they automatically place the 8-Payment amount of $131.40 on the enclosed Remittance Slip. People with poor vision, those who are elderly and those who simply don't take the time to review Assurant's pre-selected payment option and then do the math, they will likely end up spending more than double for their insurance with this particular provider.
Tip: Whenever you receive a payment due notice, review the payment options and take time to do the math. For astronomical interest/fee charges, consider reporting it to your State Attorney General along with a copy of the payment statement.
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