You have two options when purchasing your car insurance policy. You can choose to pay in full or you can choose to make a down payment and monthly payments. You will need to have the required down payment to purchase the insurance policy.
To start your insurance coverage now, you must at least make a down payment on the policy. So you cannot sign up for your insurance policy today and wait till next week or next month to make any type of payment.
For an insurance contract to be effective (bound) there must be a payment. Therefore insurance companies require at least a down payment to begin an insurance policy. The reason is that in the event of an accident or loss of some kind the customer expects the insurance company to pay for the damages and or injuries that occur. If no premium has been paid, then the coverage has not been purchased and no claim will be paid because no contract exists.
If you cannot pay for the full insurance premium at once then typically you can get a policy with a down payment and then make monthly payments on it. Whether you will want to pay for an insurance policy in full or to pay for it through monthly payments is a personal decision best ruled by your financial means and abilities. If you can afford to pay the policy upfront and all at once then do so. If instead for your finances it is better to pay it off in installments, than choose the monthly payment method.
With some of our carriers, you can add additional savings when you pay in full. Monthly payments with some car insurance companies come with a fee for each monthly installment. This fee usually covers the cost of processing your payment on a monthly basis.
You can obtain car insurance quotes here to see how much it would cost you and you can even purchase the policy online through a carrier website.
— Michelle Megna contributed to this story.
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Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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