Insurers base rates on accident frequency and loss costs. Insurers believe this good experience warrants the reduced cost. Yes, they may. Like any installment plan, insurance premium payment plans may include interest or fees. You should ask your insurance representative how much the interest or fees will be.
Most insurance companies write non-assessable policies.
A non-assessable policy is one for which there is only one rate. Therefore, if an insurance company has a year full of catastrophes, it may not ask the policyholder for more money. On an assessable policy, the insurance company could ask the insured for more money to cover losses. Liberty Mutual writes only non-assessable annual policies on which rates may increase at renewal, but you will never have to pay more for insurance you have already purchased. In Case of an Accident 21.