Premium financing
Insurance Premium Financing NJ
Insurance Premium Financing NJ: instead of paying a full year’s premium up front, you make a down payment and then monthly installments to a licensed premium finance company, which pays your insurance company in full on your behalf.
Kevin Brown Insurance Agency arranges premium financing through IPFS (Imperial PFS), one of the largest premium finance companies in North America. Your coverage is the same policy either way; financing only changes how and when you pay for it.
How premium financing works
- 1
Kevin quotes your coverage
Financing starts after the insurance itself is quoted. We place the policy first, so you know exactly what coverage you’re paying for and what the total premium, taxes and fees are.
- 2
You get a finance quote from IPFS
If you’d like to spread the cost out, Kevin prepares a finance quote from IPFS. It shows the down payment, the amount financed, the finance charge, and the number and amount of monthly installments, so you can compare it with paying in full.
- 3
You review and sign the finance agreement
The premium finance agreement is a loan between you and IPFS, not KBIA. It sets out every term: payment dates, the finance charge, late charges, and what happens if a payment is missed. Read it before you sign, and ask Kevin anything that isn’t clear.
- 4
You make the down payment and your coverage binds
Once the signed agreement and down payment are in, IPFS pays your insurance company the full premium and the policy is bound. You get your policy documents from us and your payment information from IPFS.
- 5
You pay IPFS monthly
Installments go straight to IPFS, online at ipfs.com, through the IPFS Connect app, by autopay, by phone or by check. Every IPFS notice shows your account number and Web Access Code for setting up online access.
Who premium financing helps
- Businesses with large annual premiums, such as contractors, trucking companies, property owners and hospitality venues, who would rather keep cash in the business
- E&S (surplus lines) policies, which carriers usually bill in full rather than in installments
- Renewals that came in higher than budgeted, or a policy that has to start before cash is available
- Businesses with seasonal cash flow that want predictable monthly payments
- Several policies financed together under one agreement and one monthly payment, when IPFS approves it
What to know before you finance
Financing costs more than paying in full
You pay a finance charge for spreading the payments out, and late charges can apply if a payment is late. The exact charges are shown on your finance quote and in the agreement before you sign. If you can comfortably pay in full, that’s the cheapest way to buy the same policy.
A missed payment can cancel your policy
The agreement lets the finance company cancel your policy if you stop paying. In New Jersey, after a missed payment the finance company must first mail you at least 10 days’ written notice of its intent to cancel. If the payment still isn’t made, it can then have the policy cancelled. Call us right away if you think you’ll miss a payment; it is much easier to fix before the policy cancels.
Cancelling doesn’t always settle the loan
If a financed policy is cancelled, the insurer returns any unearned premium to the finance company to pay down your balance. Many E&S policies have a minimum earned premium, and policy fees and taxes are often fully earned, so the refund may not cover everything. You could still owe IPFS the difference.
Mid-term changes can be added
If you add a vehicle, a location or coverage during the policy term, the extra premium can often be added to your existing IPFS agreement instead of being billed in one lump sum. Ask Kevin when you request the change.
Already financed with IPFS?
Your monthly payments go directly to IPFS, not to Kevin Brown Insurance Agency. Your account number and Web Access Code are on every IPFS notice.
Make a payment at ipfs.com
Pay by ACH or card with your account number and ZIP code, or log in to set up autopay.
Other ways to pay
The IPFS Connect app, phone, check or your bank’s bill pay.
Questions about your payments or balance go to IPFS. Questions about your coverage, or a payment you think you’ll miss, come to us, the sooner the better.
Premium financing FAQ
What is insurance premium financing?
It’s a short-term loan that pays your insurance premium. A premium finance company pays the insurer in full, and you repay the finance company with a down payment and monthly installments plus a finance charge.
Who do I pay each month: KBIA or IPFS?
IPFS. Kevin Brown Insurance Agency doesn’t collect premium or loan payments. Pay IPFS online at ipfs.com, through the IPFS Connect app, by autopay, by phone or by check, using the account number on your IPFS notices.
Does financing change my coverage?
No. The policy, limits and insurer are the same whether you pay in full or finance. Financing only changes how the premium is paid.
Can I finance an E&S or surplus lines policy?
Usually, yes. Financing is especially common on E&S policies, because surplus lines carriers generally expect the full premium up front. Minimum earned premium rules still apply if the policy is cancelled, so read that part of your policy before you finance.
What happens if I miss a payment?
Under New Jersey law, the finance company must mail you at least 10 days’ written notice of its intent to cancel before it can cancel your policy. Pay within that window, or call us as soon as you know there’s a problem, so we can help before coverage is lost.
How much does financing cost?
It depends on the premium, the down payment and the number of installments. Your finance quote and agreement show the finance charge and any late charges before you sign. We don’t publish sample rates because every quote is different.
Can I pay off my finance agreement early?
Ask IPFS for your payoff amount; it’s shown in your online account. The terms for early payoff are in your finance agreement.
Can I finance more than one policy?
Often, yes. Several policies can be combined under one agreement, and additional premium from a mid-term change can usually be added to an existing agreement, subject to IPFS’s approval.
Is financing available for personal insurance?
Premium financing is used mostly for commercial and specialty policies, which is where we focus. If you’re asking about a personal policy, tell us when you request your quote and we’ll let you know whether financing is an option.
Want to finance your next policy?
Tell us what you need covered and mention that you’d like to finance. Kevin quotes the coverage first, then shows you the IPFS finance terms next to the pay-in-full price.
Premium financing is provided by IPFS (Imperial PFS), a licensed premium finance company, not by Kevin Brown Insurance Agency. Financing is subject to IPFS’s approval, and all terms, including the finance charge, payment schedule, late charges and cancellation provisions, are set out in the premium finance agreement you sign. Nothing on this page is an offer of credit.
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