Frequently Asked Questions Electronic Funds Transfer (EFT)

How do I sign up for EFT?

Why do I have to register for an online account to enroll in EFT?

If you need to contact us regarding an online transaction, we will be able to validate your identity.

I have already signed up for online payments. Do I have to sign up again if I want to pay by EFT?

No – once you have created a profile with us, your user ID and password will allow you to enroll in our EFT program. To begin this process, please log in.

Does The Hanover charge a fee for using EFT?

No, unlike many other insurance companies, we don’t charge our customers for using EFT.

Does the bank charge me for using EFT?

No, one of the great advantages of EFT is that you avoid premium payment service fees and the bank’s check and processing fees.

Who can sign up for EFT?

EFT payments are available to most of our business and personal insurance customers who currently make installments payments.

In fact, the more types of policies you pay by EFT, the more you save on service fees, banking fees and postage. EFT may not be available for all customers or types of insurance, including:

  • Bonds
  • Massachusetts Commercial Auto Facility policies
  • Massachusetts Personal Auto policies currently on a full payment plan
  • Michigan Personal Auto Facility policies
  • Policyholders who have an SR-22 financial responsibility status

For additional information regarding policies that are not eligible for EFT, please contact our Customer Service department at 800-922-8427.

Can I pay for all my personal policies with one EFT withdrawal?

Yes, all policies using the same bank information and draft date will be withdrawn as one amount.

Do I have to sign up again when my policy renews?

No, the policy will renew with the EFT payment plan automatically

Can I have different draft dates on my policies?

Yes, you can choose a different draft date for each policy.

Can I switch to EFT if I have a cancellation pending on my policy?

Any request received for policies with a cancellation pending for non-payment of premiums will not be processed until payment has been made and the cancellation has been rescinded.

Can I use either a checking or savings account for EFT withdrawals?

Yes, both checking and savings accounts can be used for EFT withdrawals.

Can I use more than one bank account?

I get paid bi-weekly and have other regular bills, so I have to plan my payments carefully. Can I choose what day of the month I can have the EFT withdrawal done?

Flexibility is a key component of The Hanover’s EFT program. You can select any day of the month, from the 1st to the 28th, to have the withdrawals made.

How long does it take for EFT payments to become active?

The Hanover requires 15 days’ notice to initiate withdrawal date changes and requires a minimum of one withdrawal each calendar month.

What happens if I don’t have enough money in my account to cover the EFT withdrawal?

Your bank will make three attempts (one per day on three separate days) to withdraw the payment before notifying The Hanover that there are insufficient funds in the account to pay the premium. The Hanover may charge an insufficient funds fee and will send a notice of intent to cancel for non-payment.

Will I still get a paper bill in the mail?

Once you have signed up for EFT, and remain on EFT, you will no longer receive paper bills.

What kind of notice will I receive when EFT withdrawals begin?

We will send you a notice when your EFT withdrawals begin. The notice will show clearly what policies are being paid via EFT and give you information about the remaining payment amounts.

Will I be notified of any changes to my EFT-related information?

Many changes you initiate will be acknowledged by a Change Notification form, including, but not limited to:

  • Adding a policy to your EFT payments
  • Changing coverage limits (causing your premium to change)
  • Changing your withdrawal draft date

I submitted my policy for EFT, but I haven’t received anything saying it’s been processed. Who should I contact?

Please contact our Customer Service department at 800-922-8427.

Is a down payment required if I am already paying my policy in another way?

A down payment is only required on new business applications. Once your billing has commenced, a down payment is not required to convert to EFT.

What kind of records should I keep?

We suggest you keep all EFT related information with your policy in a safe place.

Who should I call for more information about EFT?

Please contact your agent with any questions you have about EFT.

My e-mail address has changed. How do I update it?

Log in and click on the “Update Your Profile” link found on the right-hand side of the page. There you will be able to update your e-mail address.

Can I update my mailing address online?

No, please contact our Customer Service department at 800-922-8427 to change your mailing address.

Why do I need to provide a phone number each time I make a change?

The Hanover is committed to providing you the best service possible. To ensure we have your most recent phone number, we will request that you provide your number each time you make a change.

My policies are already on EFT, can I change my banking information?

Yes, you can change your banking information online.

Can I change my draft date online?

Yes, you can select a new draft date online. When changing your withdrawal date, a calendar icon will display. Click on the calendar icon and all available withdrawal dates will display in blue. Simply click on the calendar to select your new withdrawal date and estimated start date. You will receive a Change Notification Form in the mail confirming your new date.

I’m trying to change my draft date, but I can’t select the one I want this month. Why?

There is not enough time for that particular draft date due to federal regulations regarding minimum advance notification of a withdrawal. The calendar allows you to select only those dates that are eligible based on today’s date, your current draft date and notification requirements.

I made changes to my information earlier today, but I just realized I have to go back and make another change. What happens to the changes I made earlier?

If you submit changes to your EFT information more than once on the same business day, your most recent entry will override any previous entries.

For example: If you log in at 9:00 am and enter bank account information, log out and come back in at 1:00 pm to change the draft date, you will have to re-enter your bank account information, otherwise only your draft date change will process.

I want to discontinue using EFT, how can I change to another payment method?

Please contact our Customer Service department at 800-922-8427.

What is EFT?

EFT is our Electronic Funds Transfer payment plan. EFT lets you pay your insurance premiums directly from a financial institution account of your choice, without the need for a check. When you sign up for EFT payments, you authorize The Hanover to withdraw equal monthly payments from your bank account to pay your policy premium. Once you sign up, you don’t have to do anything else – payments will be made automatically from your designated account.

EFT is a good financial and time-management tool.

  • No need to worry about missing a payment and having your policy canceled while you are traveling
  • No bills to open
  • No checks to write
  • No envelopes or stamps
  • No big down payment
  • No service charges

Will EFT save me money?

Paying your premiums by EFT can save you quite a bit of money. Here’s how:

  • EFT has no service fees (like the kind you pay when you pay by check). Service fees can be up to $5 per installment, so if you have a 10-payment plan, paying by EFT could save you $50 in service fees per policy term.
  • Typically most banks don’t charge any fees for using EFT (Many banks charge a fee for each check processed.)
  • You save postage and trips to the post office.