Buying Car Insurance ON Monthly Installment
Most of the people think that there is no down payment car insurance but it is not true. There is a rule for all automobile insurance companies that they have to accept the premium rates from their customers in form of installments. However, some auto insurance companies offer this advantage to their customers with the help of their sister concern Finance Company and hence you have too pay high rate of interest and hence increasing your monthly payment.
Clearly check the amount you have to pay in advance, number of installments, service charges and hidden charges if any in the installment plan. However, before buying any car insurance quote, ask the company to provide the above said information on company’s letterhead.
Ask from your insurance company that if you are unable to give any monthly installment, freeze your policy until your back payments are clear. Because insurance agents charge so much money from their customers but not submit the installment and you will be shock that your policy is lapse, so try to pay your installment on by own.
In today’s world, all the car insurance companies have some terms and these are:
For a policy whose validity is one year, the down payment will be 16.7% and rest of the insurance amount you are require to pay in 10 monthly installment. However, if you buy insurance policy for your car from associated company then the down payment will increase and reach to 20% of the total amount. For a policy of 6 months validity, the down payment will be 33% of the insurance money and rest of the money you have to pay in four equal monthly installments.
The above information is merely gives you an idea about your down payment, the number of installments and how much monthly installment you have to pay. However, some insurance companies may give some discount on the down payment and for this thing, the insurance company may add service charge to your monthly installment, but keep everything in your hands on the written paper before purchasing any insurance policy for your car. The service charge is only 1 to 2% of the monthly installment.
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