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How do Cheep Insurance’s payment plans work?

Last Updated: Feb 2021 | Categories: Car Insurance, General, Home & Renters Insurance

IFS Plans

How do Cheep Insurance’s payment plans work?

Most of  the monthly payment plans that Cheep Insurance’s clients are set up with are financed through a company called InsurePay and managed by a company called IFS.

What is InsurePay?

InsurePay is a Nova Scotia-based company that offers financing plans for insurance policies. The majority of insurance policies set up through Cheep Insurance are on a monthly payment plan financed by InsurePay. This allows us to offer competitive payment plan options to our clients.

What is IFS?

IFS Financial Services Inc. is a Canadian premium financing company that manages the payment plans financed by InsurePay for Cheep Insurance clients.

We know it sounds a bit confusing at first, but it’s really quite simple! If  you’re on an InsurePay payment plan:

  • The financing is provided by InsurePay, so your monthly insurance payments will show on your bank statement as “InsurePay”.
  • IFS manages your payment plan, so any payment-related questions should be directed to them. If you miss a payment and need to make up that payment, you will reach out to IFS to do so.

How the payment plans work

Most Cheep Insurance policies are on one of three different payment plans:

  1. Standard Monthly Payment Plan
  2. Non-Standard Monthly Payment Plan
  3. Facility Monthly Payment Plan

Standard Monthly Plan

The standard monthly payment plan with IFS is the most common. A 3% financing fee is applied to your total policy premium, which is then divided over 11 payments. The first payment is paid directly to Cheep Insurance when the policy is set up, and the regular payments are withdrawn from IFS starting the following month. The 12th payment of the year goes towards your policy renewal.

Example:

Policy effective January 1 2019 to January 1 2020
Premium $1200 (+ 3% financing) = $1236 (divided over 11 payments)
Payments $112.36

January 1 – $112.36 (down payment paid to Cheep Insurance)
February 1 – $112.36
March 1 – $112.36
April 1 – $112.36
May 1 – $112.36
June 1 – $112.36
July 1 – $112.36
August 1- $112.36
September 1 – $112.36
October 1 – $112.36
November 1 – $112.36
***December 1 – $112.36  (This payment goes towards the policy renewal. If you cancel the renewal, you will receive a refund of $112.36)

Non-Standard Monthly Payment Plan

If you’ve had 2 or more NSFs in the previous year, IFS will renew your policy on a non-standard plan. A 7% financing fee is applied to the total policy premium, which is then divided over 9 payments. The final 3 payments of the year will be applied to the renewal. If all your payments clear, and you cancel the renewal, you will receive 3 payments back as a refund.

Even if the insurance price is the same, monthly payments on the non-standard plan are higher because you will finish paying for the policy 3 months in advance, and the last 3 payments are kept as a reserve to apply towards your renewal to help get your payments back on track.

Example

Policy effective January 1 2019 to January 1 2020
Premium $1284 (+ 7% financing) = $1284 (divided over 9 payments)
Payments $142.66

January 1 – $142.66
February 1 – $142.66
March 1 – $142.66
April 1 – $142.66
May 1 – $142.66
June 1 – $142.66
July 1 – $142.66
August 1- $142.66
September 1 – $142.66
***October 1 – $142.66
***November 1 – $142.66
***December 1 – $142.66  (This payment goes towards the policy renewal. If you cancel the renewal, you will receive a refund of $428 since you have finished paying the premium 3 months in advance)

Facility Monthly Payment Plan

The Facility plan is for all policies through Facility Association. A 6% financing fee is applied to your total policy premium, which is then divided over 12 payments. The first double payment is paid directly to Cheep Insurance when the policy is set up, and the regular payments are withdrawn from IFS starting the following month. The 12th payment of the year goes towards your policy renewal.

Example:

Policy effective January 1 2019 to January 1 2020
Premium $1200 (+ 6% financing) = $1272 (divided over 12 payments)
Payments $106

January 1 – $212 (down payment paid to Cheep Insurance)
February 1 – $106
March 1 – $106
April 1 – $106
May 1 – $106
June 1 – $106
July 1 – $106
August 1- $106
September 1 – $106
October 1 – $106
November 1 – $106
***December 1 – $106  (This payment goes towards the policy renewal. If you cancel the renewal, you will receive a refund of $428 since you have finished paying the premium 3 months in advance)

How do I contact IFS?

You can contact IFS for payment-related questions (ex. changing a payment date, making up a missed payment, etc.). They can be reached at 902-481-6106.