When you purchase an insurance policy, one important detail that often gets overlooked is how the policy is billed.
Some policies are billed by CRA, while others are billed by the insurance carrier.
Understanding the difference between carrier billed and agency billed policies can help you avoid missed payments, prevent coverage interruptions, and know exactly who is responsible for handling your invoices.
What Is Agency Billed Insurance?
With an agency-billed policy, CRA invoices you and collects the payment on behalf of the carrier.
In this situation:
- Your bill comes from CRA
- You pay CRA
Whenever possible, we agency-bill our policies so we can provide streamlined billing experience, offer more personalized support, and assist our clients more directly throughout the policy term.
In some instances, we may not be able to agency bill a policy. In those circumstances, we turn to carrier billing.
What Is Carrier Billed Insurance?
With a carrier billed policy, the insurance company sends the invoice directly to you.
This means:
- The carrier mails or emails your bill, depending on the capability of the individual insurance carrier.
- You make payments directly to the insurance company
- The carrier manages payment reminders and billing notices which are sent directly to the consumer.
These are often referred to as:
- Direct bill policies
- Company billed policies
- Carrier billed accounts
Even though we may help answer questions or assist you in locating billing information, the carrier expects payment directly from the policyholder by the due date.
Failure to pay on time can result in:
- Late fees
- Policy cancellation
- Coverage lapses
- Reinstatement complications
Insurance carriers typically issue cancellation notices according to state regulations and their established procedures, most often through U.S. Mail. Even when a carrier offers digital billing or online payment options, they may not provide cancellation reminders by phone, text, or email, as state regulations often dictate the approved methods of delivering official notice.
Some Carriers Still Send Paper Bills Only
Many insurance companies offer digital billing and online portals — but not all do.
Some direct bill carriers:
- Primarily send invoices through regular mail
- Do not automatically email invoices
- May have limited online billing capabilities
- May not provide recurring payment reminders
Because of this, it’s extremely important to:
- Watch your mail carefully
- Keep your mailing address updated
- Review all insurance correspondence promptly
- Track your payment due dates independently
If you are not receiving bills, it does not remove the responsibility to make payments on time. Please let us know if you have any challenges with carrier billing. We’re happy to help.
How We Can Help
CRA is always here to assist when possible.
We can help:
- Answer billing questions
- Provide carrier contact information
- Help locate policy numbers
- Confirm payment mailing addresses or websites
- Assist with reinstatement requests when available
However, for carrier billed policies, the payment itself must be made directly to the insurance company by the insured.
Final Thoughts
Whether your policy is carrier billed or agency billed, timely payment is essential to keeping your coverage active and protecting yourself from unnecessary coverage interruptions.
No matter how your policy is billed, staying proactive with payments is critical.
- Keep track of due dates
- Open insurance mail promptly
- Update contact information regularly\
- Set calendar reminders for payments
- Ask questions early if you are unsure about billing
We are always happy to help guide you through the process, answer questions, and provide support. Please let us know if you have any questions or need assistance.