Are there any fees associated with my policy?
Depending on your state and policy terms, your policy may include policy or installment fees. Policy-fee proration and minimum earned premium may affect a cancellation refund.
Depending on your state, you may be charged fees in addition to your policy premium. These fees are determined by state insurance filings.
Policy fee
New policies, and renewal policies in some states, have a once-per-year policy fee for each policy issued. This fee is charged at the beginning of your insurance term, whether you pay monthly or annually.
If your renewal policy also has a policy fee, it will be included in the first charge for the new policy term.
In some states, the policy fee may be proratable. If a policy is canceled before the end of its term, the amount of the policy fee retained or refunded may be adjusted based on how long the coverage was in effect. Whether proration applies and how it is calculated depend on the policy terms and state.
Installment fee
An installment fee may be added to each premium payment to cover payment processing and bank costs. The amount and frequency vary by state.
If you pay monthly, you will generally see an installment fee on each monthly charge. If you pay annually, some states charge a fee on the annual payment and others do not.
Minimum earned premium
A minimum earned premium is not a separate fee. It is the minimum amount of premium that may be considered earned after your coverage begins.
If your policy is canceled before the end of its term, a minimum earned premium may affect how much of your paid premium is refundable. Whether it applies, how it is calculated, and the minimum amount vary by policy and state. Review your policy documents for the terms that apply to your coverage.
Frequently asked questions
What is a policy fee?
A policy fee is a once-per-year fee that may apply when a new policy is issued. In some states, it may also apply when a policy renews. It is charged at the beginning of the policy term whether you pay monthly or annually.
Is the policy fee proratable?
In some states, the policy fee may be proratable if a policy is canceled before the end of its term. The amount retained or refunded, whether proration applies, and how it is calculated depend on the policy terms and state.
What is an installment fee?
An installment fee may be added to a premium payment to cover payment processing and bank costs. The amount and frequency vary by state.
Will I pay an installment fee if I pay annually?
It depends on your state. Some states charge an installment fee on an annual payment, while others do not.
What is a minimum earned premium?
A minimum earned premium is the minimum amount of premium that may be considered earned after coverage begins. It is not a separate fee, but it may affect how much premium is refundable if a policy is canceled before the end of its term. The applicable terms vary by policy and state.