Auto Insurance Monthly Payment Plan Options

CW48
Occasional Contributor

May seem a bit petty, but what's up with "retiring" the standard payment option which had generally been my preferred choice?

2 REPLIES

@CW48- Hi, we have now gone to two payment choices to make billing easier for members and USAA too. The two remaining options are The Extended Payment Plan: With this option an annual policy is 12 consecutive, equal monthly installments, except in LA- annual polices here are billed in 11 installments. A 6-month policy is 6 consecutive, equal monthly installments. For some locations, the first installment may be higher due to taxes/surcharges that must be paid in full on the first installment. The final installment may be slightly higher than the previous installments due to rounding. The other payment option is Account Balance: the member pays the current statement balance in full at each issue, renewal, or adjustment. The payment plan that we retired on 4-1-2019 was the Regular Payment Plan: this plan provided the following monthly installments, annual policies were billed in 9 consecutive, equal monthly installments. 6 month policies were billed in 4 consecutive, equal monthly installments. There was no incentive to choosing the Regular Payment Plan, the premium is the same no matter what billing option members choose. Moving forward as long as the payment equals the Extended Plan amount or more and is paid by the due date, USAA considers the account current and not delinquent, some members may choose to continue to manually pay more than required, similar to the retired regular plan payments, this is fine, we just won't be billing like that anymore as many customers found it confusing. I hope this helps explain the whys behind our billing update.~Shawna


@ wrote:

May seem a bit petty, but what's up with "retiring" the standard payment option which had generally been my preferred choice?


The change caught me off guard as well, but have to that it was a good idea on USAA's part. Most people these days (with high insurance premiums) would choose the extended plan--especially if they're on a tight monthy budget. It reduces confusion when payments are made. You can pay as much as you want as long as you cover the min (extended plan)--and you'll be ok.