Insurance Down Payments and Which Payment Option Is Best For You? You might have found the right auto insurance policy for you at the right monthly premium but you’re deciding the best way to pay. Payment options are an important decision because it effect your monthly budget. Most likely the insurance company will allow you to pay in one of three ways: monthly payments, quarterly payments or payment in full.
Keep these things in mind when choosing the best payment option for you:
- If you pay in full, you will most likely receive a discount or lower premium price.. This makes the total payment less.
- Paying in quarterly or monthly installments may help you avoid one larger lump sum but the total payment may end up being a little higher and you may be requested to provide a down payment.
Why do I need to pay a Down Payment?
Don’t be discouraged if a down payment is necessary. They are common on many policies. Individual insurance companies determine the amount of down payments. This payment simply gets your policy activated so that you have immediate coverage and demonstrates your good faith effort to pay the monthly premiums.
Don’t let payment options and the prospect of a down payment overwhelm you. Our agents will be happy to help you assess which payment option is best for you based on your own budget and the premium amount that is needed to best accommodate your individual need. The important thing is that you and your loved ones are protected in a timely manner.