What's a Car Insurance Down Payment?

You typically make a down payment when buying a car or a house, and sometimes when you put things on layaway for the holidays. It’s an amount of money you pay upfront for things that are typically too expensive to buy outright. Perhaps you don’t have all of the money just yet to pay in full, or the sum is simply too large to pay all at once (like when you buy a house). So what about auto insurance down payments? What’s the deal? Direct Auto Insurance is here to help.

Why is there a down payment on auto insurance?

If You choose to pay your insurance premium on an installment plan offered by your carrier, instead of paying the full premium up front, a down payment is generally required to get your car insurance policy started. In most cases-especially with automobile insurance, you can’t sign up for a  policy today and wait a few weeks to make a payment. And here’s why: if you had and auto accident, in the event of an auto accident , you would expect your insurance company to help pay for the damages and injuries. After all, that’s a big reason you have car insurance! (And also because it’s the law.) But if no premium has been paid, then the coverage has not been purchased and your claim cannot be paid. 

How much are auto insurance down payments?

Down payments vary depending on your state, individual policy, and company guidelines. Drivers with a not-so-great credit or driving history, or those in need of an SR22/FR44 filing, may be required to make a higher down payment. Down payments can also depend on the type of car you're looking to insure. With a newer, more expensive car, you may struggle to find low down payment auto insurance because typically the overall insurance premiums for newer cars will be higher. Under the right circumstances, older vehicles can have a better shot at being eligible for a low down payment.

With Direct Auto, YOU decide the amount you wish to put down and in turn determine your monthly cost. The more you wish to pay up front, the lower your monthly payments will be.  Or, you always have the option to pay for your policy in full. You choose! We put in you in control.

How can I make a down payment?

There are so many flexible ways you can make your down payment, plus your payments after that too. Visit a store near you to pay in person, go online, or pay by phone. Which convenient payment method will you choose? [link to infographic and older blogs]

  • Pay with a credit or debit card
  • Pay with an electronic check
  • Pay with cash in person
  • Pay by text message (once your policy is set up)
  • Pay at a partner payment location (once your policy is set up)

Get a low down payment at Direct Auto

We specialize in offering drivers the coverage they need, the services they want, and the respect they deserve — regardless of their driving history. Ready to see how you can get auto insurance at a budget-friendly rate? Call 1-877-463-4732 or stop by a Direct Auto location near you to see how low your down payment can go!