As it sounds like, automatic bill pay is when you set up a money transfer with a company (or sometimes the company’s third party online bill pay service) and have them automatically deduct a scheduled payment to honor a recurring bill.
Many people utilize automatic bill payments to pay for their credit card, auto insurance, utility, monthly rent, phone, or other monthly bills.
You can choose to make automatic payments using your credit or debit card, or set up payments to directly come out of your checking or savings account. This is known as EFT (electronic funds transfer).
Automatic Bill Paying and Insurance
At A Plus Insurance, we often recommend that our clients utilize automatic bill pay since many of our carriers offer significant discounts to your insurance premium if you utilize this option. However, when setting up an auto insurance policy, we do offer various payment methods and options.
When it comes to auto insurance, the consequences of not having a policy in force can be detrimental. If you forget to make a payment and your policy cancels, you could end up unknowingly driving without insurance. Even if you aren’t caught (which could lead to fines or jail time), having your insurance lapse is very costly. Having your payments come out automatically can help prevent all that!
Is Automatic Bill Paying Safe?
We do understand that many people are concerned about online security and keeping their financial assets safe.
When using online banking or automatic bill payment, there is always a risk for fraudulent activity or other scary “what ifs”.
However keep in mind that utilizing “old school” payment methods such as mailing in your check, has it’s risks too. Mail can be stolen as well, and any financial information is equally at risk if not more, as it would have been if you did an online payment.
Thankfully, banking and other companies have worked very hard to improve online security. They utilize secure logins and various other security tools to make sure you are protected. Also, if you do suspect fraudulent activity, banks make it very convenient for you to to dispute the charges and get your money back.
Why You Should Consider automatic bill paying
Overall the benefits of using automatic bill paying are very appealing. Check out some of the pros:
Easy and convenient: Most bills are not worth forgetting to pay. Companies give very little wiggle room and are not very lenient when you forget a payment. Shut off power, phone service cancellation, eviction notices, car insurance lapses, we’ve all seen the consequences of forgetting a payment. Autopay takes the stress of all of that off the table and means one less thing you have to remember to do.
Eliminate late fees: Let’s say you remember your bill, but it’s still one day late. Late payments are expensive! Automatic bill paying ensure that you make your payments on time.
Safer than you think: People don’t realize that paying via mail and check can be even riskier than paying with a card. Paper checks contain direct access into your funds, and if that’s stolen in the mail, your very sensitive information is up for grabs.
Things to consider Before Using automatic bill paying
As with all things in life, everything comes with a caveat. While automatic bill payments have significant perks, there are a few things to be mindful of.
Cancellation of autopay isn’t automatic: Unfortunately, many companies will charge your bank account indefinitely if you do not actively cancel or cut off payments. If you cancel a subscription to a service, autopay is not always cancelled along with it.
How to prevent the issue: Make sure you do your due diligence to stop all payments if you are no longer using a service. Also, some companies demand that you give them notice to stop your automatic bill paying at least 5 business days in advance (or a number of days set by them), or else they will still deduct a payment.
Non sufficient funds: If you don’t have sufficient funds in your account, your payment will bounce. Many companies will charge non sufficient funds fees as well, and that is in addition to a late fee. That could lead to almost an extra $50 dollars worth of unexpected fees.
How to prevent the issue: Keep track of your account by setting up an alert that goes off before the payment is scheduled to go through. If you don’t trust yourself to do that, use a credit card that has plenty of limit left and make sure to pay off the balance to prevent credit card debt.
Easy to lose track of: If you have multiple companies that you do automatic bill paying with, it can be easy to lose track of your finances, and more money could be coming out each month than you realize.
How to prevent the issue:Make sure you are budgeting correctly and efficiently. Use a journal or app to make sure you are keeping account of every cent that goes out of your bank.
How you pay your bills is ultimately a personal decision, and you should do what is right for YOU and your finances. However, the pros for choosing to use automatic billing is worth considering.
Crystal was great! Lowered ny rate while adding...read moreCrystal was great! Lowered ny rate while adding another car to my policy. Thanks A+!read less
Chill O.
7/21/2021
The agent was very helpful in finding me...read moreThe agent was very helpful in finding me the least expensive insurance that meets my needs. I'm extremely satisfied with the service I received and would recommend it to anyone. Thank you Lauren, it was a pleasure to work with you.read less
Kimberly D.
7/21/2021
Great experience. Great customer service
Danita M.
10/21/2022
My agent was Jola , she was how...read moreMy agent was Jola , she was how do you say ?? AMAZING!!! She found me the cheapest insurance and explained everything so well to where even I could understand thank you very much again she deserves a pay raise !
Notes: 2003 HOnda Pilot with affordable liability only coverage for one driver with accident and violation free discounts applied. read less
amber c.
6/21/2022
I give this company a five star rating...read moreI give this company a five star rating ! The salesman Marlon Moss got me a great rate with a good company . I was very happy with his attitude & demeanor ! Most insurance salesman or just trying to put you in a plan to make a sale not this guy he wanted to make sure I got the coverage I wanted in the way I wanted it and I do greatly appreciate that thank you Marlon!!!😁read less
Gary G.
3/08/2023
Crystal was an amazing help !! so nice...read moreCrystal was an amazing help !! so nice and got everything done in a split second !read less
Nevaeh S.
8/14/2022
Was amazing and I received a great quote....would...read moreWas amazing and I received a great quote....would definitely recommendread less
Chaos G.
10/14/2022
Crystal was so kind, knowledgeable and responsive. They...read moreCrystal was so kind, knowledgeable and responsive. They found the best rates and made this process so easy for me!read less
Sunita R.
9/17/2022
Crystal is awesome!
Chad R.
8/31/2023
Extremely helpful and found me a much better deal!
Mountain M.
7/21/2020
My agent Marlon was amazing! He provided an...read moreMy agent Marlon was amazing! He provided an extraordinary level of customer service! He was polite, professional, positive, followed through, and assisted me every step of the way. I look forward to working with him again when I have to make changes when I move.read less
Wendy K.
2/21/2022
This is not my first policy through A+....read moreThis is not my first policy through A+. Every single agent is more than helpful giving the best advice from their inside knowledge, to assist my success in whatever current circumstance of life. They are real, honest, friendly, never upselling unnecessarily, patient. I LOVE how they each get to know you personally. During my last policy, when I called up any agent could hear my name and would say "Oh hey, let me pull up your policy with ******" before continuing to pick up the conversation where we left off from the last phone call. They always get back to me within 24 hours if I have questions, etc. I will be with A+ for the rest of my driving career for these reasons and so many more. This company embodies the perfect family owned and operated local business.read less
Ena R.
7/21/2021
Crystal was a great help and very professional!!
Notes:...read moreCrystal was a great help and very professional!!
Notes: Fast proof of insurance in South Carolina through National General. Previous insurance Progressive on a 2011 Chevy Impala LS ..Insurance policy meets the state minimum liability limits with Uninsured motorist bodily injury protectionread less
Dwayne A.
6/23/2022
I give this company a five star rating...read moreI give this company a five star rating ! The salesman Marlon Moss got me a great rate with a good company . I was very happy with his attitude & demeanor ! Most insurance salesman or just trying to put you in a plan to make a sale not this guy he wanted to make sure I got the coverage I wanted in the way I wanted it and I do greatly appreciate that thank you Marlon!!!😁read less
Gary G.
3/08/2023
Katie was incredibly helpful!! Very personable, understanding, and...read moreKatie was incredibly helpful!! Very personable, understanding, and kind. Quick and easy, thanks again katie!!read less
Kellen R.
7/21/2021
Katie is great! I just moved back from...read moreKatie is great! I just moved back from Fl to Co and Katie was able to help me again with getting new insurance. I really appreciate it and her! Thank you!read less
Pana C.
7/21/2021
Jola was so great at helping me! She...read moreJola was so great at helping me! She didn’t mind how much I wanted to compare the prices on things and was so kind and patient through a few bumps in the road we had during the process! Really felt taken care of, thank you!read less
Stephanie S.
7/21/2021
They find the cheapest option to fit your...read moreThey find the cheapest option to fit your needs. Its better then calling each company directly burning time.read less
Fario S.
7/21/2021
Awesome saved us tons!!!
Notes: first time customer...read moreAwesome saved us tons!!!
Notes: first time customer clean driving history with uninsured motorist 31 quote competitive liability insurance Ticket Virginia Prior insurance Viking Subaruread less
Thug W.
6/21/2022
Marlon was very fun and Helpful in getting...read moreMarlon was very fun and Helpful in getting me the best rates possible!read less
Ivette F.
3/01/2023
I needed to change insurance company's fast and...read moreI needed to change insurance company's fast and A Plus was a great way to do it! All staff members where friendly and helpful.read less
eric S.
7/21/2020
Insurance notes: single landlord 37 lowest fast...read moreInsurance notes: single landlord 37 lowest fast homeowners insurance premium Colorado Prior insurance State Farm Chrysler bundled to save more.read less
Ci C.
4/21/2022
Great customer service! I highly recommend! Jonathan was...read moreGreat customer service! I highly recommend! Jonathan was very attentive, helpful, patient, knowledgeable, quick, informative, professional, funny, and kind.read less
Lysha M.
8/21/2021
Veronica was super helpful with finding me the...read moreVeronica was super helpful with finding me the most affordable car insurance. She answered all my questions and made sure I understood the whole process, since this was new to me! I would definitely recommend her to others!!
Owner Response: Thank you Andrea, we are so happy we could help!
Insurance policy notes: National General was the least expensive for a 2019 Honda CRV - able to provide immediate proof of insurance read less