Question about insurance, please help me out?

Question

My boyfriend just called his insurance agent to ask when his payment was due, his agent told him that it is not due till 7/26 and his payment has dropped to $103 from $238. Why would he not have to pay this month? I know he was supposed to renew this month as well.

Answer 1

There are several reasons why the premium payment has dropped.

Your friend could have had an age change, some violations or accidents may have dropped off.

For the current term he may have paid two months at a time, which would account for June payment not being due. Now the renewal monthly has dropped somewhat.

There is not really enough information in your question to pinpoint the exact reason for the decrease.

Answer 2

your policy is generaly figured by 6 mo. or 1yr.  for instance if he bought a 6 mo. policy and was quoted 800$   that is usually split up into 5 or 6 payments.  If it was split up into 5 payments you would not have a 6th payment at the end of your policy.

Answer 3

He'd have to ask his agent.  Likely, this is the last month before the policy renews - and when you renew, you pay the first two months.