i am adding another vehicle to my policy, was told i had to pay two months premium up front is that correct?

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Asked October 31, 2016

1 Answer


Premium payments are regulated in Texas, and payment plans are an acceptable way to purchase auto insurance. According to the Texas Department of Insurance, consumers do have the right to make installment payments to purchase a policy. Insurance companies are allowed to charge the consumer for the first two months of the plan to secure a policy, and they are then allowed to charge the rest of the premium payments for the plan into equal payments.

A six-month policy will be broken up into an up-front charge of the first two months, and there will be four remaining payments that equal the rest of the premium for the policy. If the policy is written for an entire year, the consumer will pay an amount equal the first two months, and they will then make ten equal payments to finish paying off that year’s policy.

No matter what length the policy is in this state, insurance companies are allowed to charge the first two months of premium before issuing a policy for any vehicle.

Answered November 2, 2016 by CarInsuranceCowboy

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