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Is There a Down Payment For Car Insurance?

car insurance down payment

It’s a practice that is consistent with several car insurance companies; they will require a certain amount of money upfront before they activate your policy. You would have the option to pay it upfront or have it included in your first monthly premium. If you can’t pay it in one go, then the insurance company can put you on a payment plan. When you pay it upfront, your new insurer may cut you a discount on your premiums. Let’s look at some ways you can make this down payment on your new car insurance and how to save while doing so.

How Can You Make a Down Payment For Car Insurance?

Insurance providers usually offer payment methods in person, over the phone, through their website, or via their mobile app. It’s easy as making any other payment. Widely accepted payment methods include checks, online payment, credit or debit cards, and even through your bank. A word to the wise, choose an insurer with a payment method or plan you can absolutely keep up with. Say the insurance company doesn’t have an office where you are, and you must use their website -an automated payment may be the best move.

How Much of The Down Payment Should you Pay?

In a perfect world, you would want to make the whole payment at once. As said before, insurance companies usually reward this with a pay-in-full discount. However, if you can’t make the full payment at once, you can do a payment plan. Payment plans usually require making a down payment of up to 33% of your premium, along with setting up a monthly or weekly payment plan. The insurer may charge you an additional installment fee of up to $10.

Is There Always a Down Payment For Car Insurance?

In short, yes. Every insurance provider will require a down payment before they begin your policy -either upfront, as part of your first monthly premium, or in a payment plan. These payments are typically required one month in advance of your policy start date. The exact amount you’ll need to pay depends on your insurer and state of residence. High-risk drivers with SR22 insurance are known to have higher down payments than average drivers.

Does Pay-Per-Mile Car Insurance Have a Down Payment?

Drivers that don’t log as many miles as the average driver does usually opt for pay-per-mile car insurance. This car insurance allows policyholders to pay premiums based on the miles they travel per month. While a down payment is required for this insurance, it is significantly less than the ones required for a standard auto policy.

Just a few minutes of your time can get you a better rate on your cheap auto insurance coverage. Contact Insurance Navy today for your free quote. Call 888-949-6289 or visit us online to apply for a quote.

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