An auto insurance premium is the cost of your entire period of insurance, usually 6 or 12 months. A down payment typically covers one or more months of premium along with any other fees and / or costs associated with processing your policy. So a down payment is a portion of your obligation toward payment of your total premium.

A couple of the best discounts that are relatively unknown with car insurance, are the paid in full discount and/or purchasing a policy 8-14 days before renewal.

If you pay your insurance premium in full then there is not down payment just a full payment to the insurance company. If you finance your insurance policy or pay it with a direct billing plan then you will owe payments each month plus at the inception of the policy have to pay a down payment amount.

Many companies offer a 10% to 40% discount when you pay in full at CarInsurance.com. In addition, some companies may request a higher down payment if you don't have prior insurance.

So you typically make a down payment then make payments. Each state has requirements on the minimum down payment, but it is typically 25% of the policy premium. You are required to make a minimum down payment when purchasing your policy with our affiliates and partners. If you need insurance and cannot afford a large down payment we offer many payment plans to help you purchase the policy that you need.

Once you have an auto insurance quote and have decided you want to set up a payment plan the insurance company involved will inform you of the down payment amount that will be due to start up the policy. Remember the down payment is usually calculated as a percentage of the entire term premium. Your specific insurer can inform you if it is the typical 16, 25 or 33 percent or a different percent of your full premium amount.

If you purchase an insurance policy through CarInsurance.com, we accept payment from checking accounts, savings account, prepaid debit card or third party as well as the certain credit cards including Visa and MasterCard.