How does a down payment work when it comes to car insurance?

I thought I could make monthly payments for car insurance, but apparently I need to make a down payment, too? How do down payments work?

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Shannon Martin
Answered on May 06, 2021
“Payment plans and terminology with car insurance can be a little tricky. The best thing to do is to check with the particular carrier or agent you are working with for clarification since each company is different.
Hopefully, this advice will help you out in the meantime.
Some carriers do require a down payment, plus the first month’s policy premium, to start the policy. You may see it written like this: $200 down, $100 to start, with five monthly payments of $100.
Other carriers either don’t require a true down payment or they will roll it into the first month’s payment. You may see it written like this: $200 down with five monthly payments of $100
Any way you pay, the down payment is usually just a higher percentage of the total policy premium. If a customer has had a lapse of insurance or has had several policies canceled for non-payment, the carrier may want a bigger down payment upfront. “
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