May 7, 2010

Getting An Electronic Bill And How It Changes Auto Insurance Payments

There are two facets of auto insurance that are most dreaded by consumers. The first is making a claim, as even with good coverage, the fact that a vehicle has been damaged or destroyed is never pleasant. The second is the monthly premium payment. No matter how well the insurance company treats a customer, no one likes having to pay their provider any portion of their hard-earned money. While claims will always be a part of the insurance process, and coverage cannot happen without payment for services rendered, there is now a way those consumers can make their bill payments simpler and more streamlined with the use of electronic bill payments.

There are two typical ways in which these electronic bill payments, or e-bills as they are often called, are delivered to consumers. The first is as an actual paper bill which can then be paid online. These bills are great for consumers who still want to receive a physical bill for their records, but want the convenience of paying online. Consumers will either be required to create an account and password which they can then use to access an online insurance system, or can, in many cases, set up a system whereby they can pay their bill directly from their bank account. The second option is for a true e-bill, which is directly debited from a client’s account or is simply sent via e-mail. This completely eliminates the need for any paper transfer between the company and the client.

If they offer true e-bills, many auto insurance companies will also offer small discounts for switching to a purely online service. Not having to create, stamp and mail a letter saves the company both time and money, and they will often pass a small part of those savings on to consumers in the form of a small reduction in premiums. As technology advances, some companies have even begun offering electronic bill payments via Smartphones or other cellular devices. This makes the onerous task of bill payment significantly easier, if not any more pleasant.

In a society increasingly concerned with environmental stewardship and an economic atmosphere in which companies are looking to cut costs when at all possible, the move to electronic bill payments for the auto insurance industry was a logical and efficient next step. Thankfully, e-bills benefit both consumers and companies, allowing not only ease of payment, but the security of knowing that payments are received instantly, helping to avoid any accidental gaps in coverage due to undelivered mail or other issues outside of either party’s control. The e-bill system can help a company streamline their billing process, while simultaneously making the insurance payment process easier for clients.