You are required to make a deposit in the form of a minimum down payment when purchasing your auto insurance policy if you do not pay for your policy in full. The down payment is usually calculated as a percentage of the entire term premium.
Many companies now offer a 10% to 40% discount when you pay in full. You typically make a down payment, then make payments periodically. 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, there are 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.