How Payments Work
Normally, when a policy is first written the insurance company will require a deposit. The amount depends on the frequency of payments. Regardless of the number of payments initially established, a payment will not be due on the last month of the policy period, rather, a final audit will be conducted after the expiration of the policy & the deposit will be applied at that time. Instead of making a monthly payment for that last month, the insured normally pays the deposit for the next year & the process repeats each year.
Typically, no regular payment is due for the last month, rather, your final audit will occur sometime in the month following the expiration of the policy. At that time, all payments will be totaled, & your deposit will be added to that total. That amount will then be compared to the amount due, & the insurance company will then refund any overage or bill you for any amount due.
Available in PDF