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Pay your insurance premium on time.

Always pay your insurance premiums on time. If you don't do this, it could cost you a lot of money in the long term.

Auto and home insurance companies will review your claim history and payment history. If you make a habit of waiting until the last minute to pay insurance premiums, your insurance company could non-renew your insurance policy.

It costs money to send out reminder notices and have customer service people track your bill. These costs can mean the difference from the insurance company making money or losing money on your particular account. A poor payment history is just one of the things that a company will look at when reviewing your policy. Combine that with a low credit score and one or two claims, and the insurance company might decide you aren't the kind of client that they want to keep.

Most companies now offer an automatic payment option. If you pay automatically through your bank account, or credit/debit card, some companies are willing to remove the monthly installment fee. Having your payment deducted automatically can save you as much as $40-$70 annually on your insurance policies.

The added benefit to paying your premium automatically is that you never have to remember to pay your bill. I am sure that most of us have misplaced a bill at one time or another. Doing this with an insurance bill can have devastating effects.