Auto insurance premiums are among the most predictable bill payments in consumers’ lives. All but one state (New Hampshire) requires car owners to have auto insurance policies that help protect drivers, citizens, cars, and property from the damaging effects of auto accidents. Missed auto insurance payments can have serious consequences that go beyond losing the ability to drive the uninsured vehicle. Law enforcement can write tickets, issue fines, and even suspend car owners’ driver’s licenses. Undoing the damage caused by lapsed car insurance can be a headache, costing both time and money.
Given the disruptive repercussions of lapsed auto insurance, it’s important to make the bill payment process as user-friendly as possible for policyholders. A forward-thinking electronic bill presentment and payment (EBPP) solution empowers auto insurers to deliver a seamless experience that can help avoid the negative consequences of missed payments. Here are three ways EBPP can facilitate a more user-friendly bill payment experience for auto insurance policyholders.
- Automate auto insurance payments
Allowing policyholders to automate their bill payments can help ensure that they keep their accounts in good standing. Thirty-nine percent, with continuous growth, of individuals prefer using automatic payments as opposed to manually paying on the day of. With EBPP solutions, Policyholders can sign up for e-bills, enroll in AutoPay, manage funding sources, and take comfort in knowing that their auto insurance premiums will be paid in full and on time.
- Offer discounts for full premium payments
Today, 5 out of 10 of the largest insurance companies offer a pay-in-full discount. Making a full payment on an annual car insurance premium can help eliminate worry for both policyholders and auto insurers for a full 12 months. Auto insurers might consider offering incentives to encourage full premium payments through flat rate or percentage-based discounts. At this time, many opt for a 6-14% discount. Auto insurers can further facilitate one-time payments by offering policyholders a quick and easy experience where they simply visit a website, key in identifying account information, and make their full premium payment without logging with a User ID and Password.
- Mobilize car insurance payments
Paying auto insurance premiums no longer means sending in checks or logging in via desktop computers. EBPP solutions can accept auto insurance payments through optimized mobile websites and innovative channels like text messaging (Pay by Text) and messaging apps (Facebook Messenger). Also, some EBPP solutions even support bill payments through intelligent personal assistants like Amazon Alexa and Google Assistant. This allows policyholders to make voice payments via smart speakers using simple spoken commands resulting in a convenient and personalized payment experience.
The Bottom Line: Auto insurance payments are simply too important to miss. An EBPP solution can streamline auto insurance payments by automating monthly transactions, supporting discount pricing for full premium payments, and delivering a convenient bill payment experience via innovative channels that policyholders use most.
Should you offer Pay by Text? Read 3 Reasons Why You Need to Offer Pay by Text—Now.
*This is an update on an original post published March 2019
Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Pay by Text is just one of several Orbipay EBPP features available to help you accelerate receivables. For more information, please contact us at info@alacriti.com.
