Premium Financing
Paying an insurance premium over time through a finance company, usually with a down payment and monthly installments plus a finance charge.
What it means for your firm
A premium finance company pays the carrier up front. You repay the finance company in installments, often after a down payment of around 20%.
It costs more than paying in full because of the finance charge. Some carriers offer their own installment plans instead, often with a small fee per installment.
If an installment is missed, the finance company can ask the carrier to cancel the policy.
Guides that use it
Articles that explain it
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
Tell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.