10. Pay Your Premium in Full
Monthly payment plans often include a small service fee attached to each installment, and over the course of a year those fees can add up to a meaningful amount. If a lump sum payment is not realistic for your budget, ask whether your insurer offers a quarterly or semi-annual option instead, which usually carries lower fees than a full monthly plan while still being more manageable than paying the entire year upfront.
Many insurers charge installment fees for monthly payments, and some offer a discount if you pay your six month or annual premium in one lump sum. If you have the cash available, paying upfront can save you both the installment fees and sometimes an additional discount on top of that.
Quick tip: Compare the total cost of monthly installments including fees against the lump sum price, since the difference is sometimes larger than people expect once fees are added up over a year.