Payment method during the year
The payment method during the year is offered by all German insurance companies for a large number of insurance contracts. The insurance premium is not paid in full in advance, but rather every six months, quarterly or monthly ( aliquot parts in advance).
Consequences of a payment made during the year
As a result of the payment method agreed during the course of the year before the contract is signed, the insurers usually charge installment surcharges, which increases the insurance premium. This surcharge is justified by the greater administrative effort associated with the more frequent payment entries. The usual surcharges levied by the insurance companies are 3 percent of the insurance premium for the semi-annual payment method or 5 percent for the quarterly payment method.
Austria
In Austria, the term surcharge is used, which is variously required by insurance companies. The federal fee for motor-related insurance tax has been collected by motor vehicle insurers for many years and paid to the tax office - this has an under-year surcharge under the law that the insurance company cannot waive.
Legal implications
A contractually agreed method of payment of insurance premiums during the year does not constitute a deferred payment and therefore does not constitute a credit grant in the sense of the provisions of the Consumer Credit Act (VerbrKrG) applicable to consumer loan contracts.
Individual evidence
- ↑ surcharge during the year . Die Geldmarie - The independent finance portal, geldmarie.at, accessed July 27, 2016.
- ^ Insurance: surcharge during the year, VKI wins trial against Wüstenrot , Konsument.at, March 10, 2016, updated March 18, 2016, accessed July 27, 2016.