By registering with us, you'll be able to discuss, share and private message with other members of our community.
SignUp Now!Hi,I have never had interest charged, but there is normally a service charge, the size of which is decided by the company. With my previous broker & insurer, the fee was 5% of the total premium. With my current companies, the fee is so small it makes more sense to go with monthly payments.
The sales tax is likely provincial or harmonized sales tax (not sure where you are). Service charges are normally clearly stated, but if they are included in the premium, and the premium is acceptable, then that shouldn't be an issue. Your broker should be able to clarify for you.Hi,
Is this interest/service charged supposed to be clearly mentioned on the renewal document from the insurance company?
I only see the 'Renewal' amount and 'Sales Tax' which is 8% of the Renewal amount. We are paying monthly and no other fee is mentioned on the renewal letter.
Is the interest probably part of the 8% 'Sales Tax' shown? Or is it hidden in the 'Renewal' amount - where moving from monthly to annual payments would reduce the 'Renewal'?
Thanks
PS. If your service charge is reduced when you switch from monthly payments to annual, then I think it is a kind of an interest charge even if they do not call it an interest charge
Hi,The sales tax is likely provincial or harmonized sales tax (not sure where you are). Service charges are normally clearly stated, but if they are included in the premium, and the premium is acceptable, then that shouldn't be an issue. Your broker should be able to clarify for you.
I have never had interest charged, but there is normally a service charge, the size of which is decided by the company. With my previous broker & insurer, the fee was 5% of the total premium. With my current companies, the fee is so small it makes more sense to go with monthly payments.
Hi,a fee is a fee so why not pay lump sum?
Hi,Hi
Thanks for the math lesson
By your logic why not do equalized utilities, and property tax payments. It's only 0.1 % on all of them? Because your running a business not investing for interest. An expense is an expense and as an owner you must minimize your expenses and preserve your ROI, hence property value. But you already knew that.