Do you have to make a down payment for a commercial insurance policy?
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Asked February 4, 2019
Insurance companies require down payments before issuing a commercial vehicle insurance policy. The amount depends on the type of insurance plan offered. Before beginning coverage, an insurance company will charge a down payment. The down payment is usually the first month’s payment.
Insurance companies do not charge a standard amount as a down payment. The amount charged depends on many factors. Factors that determine the down payment include, your credit score, the state where you reside, if you have been a customer of the insurance company for a long time, the type of commercial vehicle and your driving history if you plan to drive the vehicle by yourself.
Insurance companies offer payment schedules depending on the amount you pay. If you pay your policy in full, they often give a discount. If you cannot pay the entire amount upfront, you can request the company to give you an installment plan. A down payment will be required to start the policy under the installment plan. The down payment charged on an installment plan is usually 8 to 33 percent of the total policy premium.
No Down Payment Insurance
Commercial vehicle insurance is a competitive business and there are many companies offering commercial insurance policies. No insurance company offers commercial vehicle insurance policies without requiring a down payment. At least one month’s premium is charged as down payment before issuing a commercial vehicle insurance policy.
Before buying a commercial vehicle insurance policy, it is prudent to shop or use tools in insurance company websites to find a low down payment policy. You must check that the policy offers the coverage that you require. A low down payment policy without adequate coverage will result in your having to pay a large sum as compensation in the event of an accident.
Answered February 5, 2019 by agenture