What's an installment payment service fee?

Michelle Megna | Updated on: Nov 08, 2010

Some insurance companies charge a fee for each monthly payment if you do not pay in full for the policy.

An installment payment service fee usually covers the cost of processing your payment on a monthly basis. To avoid paying this monthly service fee, you can pay in full when you buy your auto insurance policy.

Michelle Megna

Editorial Director

Michelle is a writer, editor and expert on car insurance and personal finance. Prior to joining CarInsurance.com, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News.