Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Whenever you buy an auto policy, you’ll have to submit a payment with your application to bind coverage
  • The minimum amount that you can pay to start a policy is the monthly premium you were quoted plus a deposit
  • If you’d prefer to pay more without paying in full, you can pay quarterly or semi-annual premiums
  • You may have to set up a payment installment plan with the insurer when you’re making multiple premium payments
  • You can’t pay your invoice in half when you already have an installment plan set up or coverage will cancel

There’s nothing more frustrating than opening up your mailbox just to find a pile of bills. Unfortunately, there’s no way to live life without having to pay for housing, food, and transportation expenses.

Depending on where you live and how much you make, managing your bills can get difficult from time to time.

One bill that no one enjoys paying is their auto insurance premiums. You may enjoy life as a licensed driver and a vehicle owner, but it’s never fun to pay for a product or a service that you don’t want to use.

Regardless of how you feel about it, you’ll have to maintain your auto insurance for as long as you own a car.

Do what you can to lower your car insurance bill. Compare quotes today to see if you could be paying less.

As you’re budgeting to pay your bills, you have to keep installment options in mind. Here’s what you should know:

You Must Submit a Payment With Your Application

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If you’re in the process of securing a new auto insurance policy, you have to submit an application for coverage. The application has to be reviewed, underwritten, and then approved.

In the meantime, you’ll have coverage as long as you submit a payment with your application. The coverage is granted through a temporary binder.

Insurance companies will ask that you make a down payment to start your policy. With some companies, the down payment is just the first month and with others, it is as much as 30 percent of your total policy premium.

It all depends on where you live and which company you’re getting your coverage through.

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How do you pay half of your premiums when you apply?

If you’d rather pay more than the required deposit so you’re not stuck paying for your coverage every month, you do have the option to set up an installment plan through the carrier.

The most common installment plan is to pay monthly, but there’s always the option to half of the total premium.

The installment that you have to select to pay for half of your premiums depends on the term that you’re carrying. If you’re going to buy a six-month term, half of the premiums would cover three months of coverage.

If you’re going to buy a 12-month term, half of your premiums would cover six months of coverage. Here’s how to select the right installment:

  • Quarterly – select the quarterly installment option to pay half of your six-month premium
  • Semi-annually – select the semi-annual installment option when you have a 12-month policy

Can you pay half of your installment after it’s billed?

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You always have the option to pay half of your policy premiums when you start a policy, but you shouldn’t mistake this for paying half of your payment.

If you’ve already selected an installment plan and you’ve received a bill in the mail, you have to pay that bill in full or make further arrangements with the company.

When you have a quarterly or semi-annual plan and you can’t afford to pay the whole installment at once, there’s a chance that the carrier could change you to a monthly installment plan.

This will make it possible for you to cover the bill that’s due at the current time so that your insurance doesn’t lapse just because you can’t pay the whole amount that’s billed.

If you fail to set up arrangements with your carrier or you can’t pay the minimum amount that’s needed to keep your coverage active, your policy will terminate.

When the policy is terminated for non-payment, you’ll be without protection and you could face some civil or criminal penalties.

What is the benefit of paying for half of your insurance at once?

There are advantages to paying half of your policy premium. The biggest benefit is that you’ll be able to avoid paying the six or 12 installment fees that you’d be stuck paying if you paid monthly.

In addition to that, you don’t have to worry about forgetting to submit a payment every month, which makes it a more convenient option.

Price is important but so is service. One thing you should focus on while you’re looking for an insurer is which insurers have the most flexible payment options.

When the company has flexible plans available then it’s a sign that they focus on customer satisfaction. Always research carriers before you research price.

Once you do this, log into our online quoting system and find out how much you’ll pay for coverage.