I prefer to pay in cash. There is nothing wrong with paying cash, but it does not provide a paper trail in case anything goes wrong with the service or product you are buying. Using your check, money order or a credit card will make it easier to prove that you made a payment if there is ever a question. If you do pay cash, make sure you get a signed receipt. The receipt should have the name, address and phone number of the agency or the insurance company printed on it.
Many agents collect payments as a service to their clients.
But if you pay in cash, it could be a problem, because cash is not easily traced. If your agent does not send in your payment to the insurance company, your policy will be canceled. Your insurance premium billing statements will be sent to your home and in most cases they contain a return envelope for sending back the payment. The safest way to pay your insurance premiums is to send a check or money order directly to the company that bills you, using the envelope it sent you. Many people believe that giving a different address to get a better rate on their car insurance or exaggerating the amount of damage in a homeowner's claim is not really illegal.