Monthly Auto Insurance Payments

There are two ways to pay for your auto insurance premium; paying in full or month to month payments. There are drivers who feel it necessary to pay for their premium in full at the beginning of their policy period, either because they don’t want to forget to pay it or they want that bill out of the way until the policy is renewed. Some drivers find this large sum of money too much to pay out all at once.
One method to squeeze in the financial strain of auto insurance premiums is bypassing paying in full and breaking that one-chunk fee into smaller payments, according to the auto insurance company’s terms. Of course there are pros and cons to this method, but these are days where people are trying to minimize budgets as much as possible, and the pros may just outweigh the cons in the eyes of some policyholders.

Down Payment

Auto insurance companies vary on their policies of how a customer or policyholder may pay for their premium. Some companies require the policyholder to pay a portion of the premium upfront, usually around 25% of the total premium, and then pay the remaining balance off in equal monthly payments for the duration of the policy period. Other companies may allow the policyholder to pay in equal monthly payments from the beginning of the policy period, without needing to make a down payment. In some auto insurance companies this option may only be available to policyholders in good standing with the company, or who have been customers over a certain period of time. Auto insurance companies are willing to give more options to customers who show responsibility in their driving record and with their payment history.