Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Feb 3, 2020

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The amount of money that people will have to pay as down payment concerns people. They may not have a large amount of money to give as a down payment, and they may begin to think that they will not be able to drive if they can’t purchase an auto insurance policy.

Auto insurance companies are allowing so much flexibility that clients do not have to worry that they will have to pay an average down payment.

To compare several auto insurance quotes at once, enter your ZIP code into the FREE tool above now!

Several Averages

Where auto insurance is concerned, there are several averages. A few of these averages are:

  • The national average payment
  • The average payment for each individual state
  • The average for each city
  • The average for each demographic

Depending on the average one chooses, the average down payment would turn out to be a different amount each time.

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No Average Down Payment Exists

No average down payment exists because different people with different auto insurance companies have the ability to choose how much they are going to pay as a down payment.

Auto insurance companies offer people so many different payment plans that everyone will be able to find one that they can easily afford.

The Three-month, Six-month and 12-month Plans

One option is for auto insurance customers to pay their entire premiums all at once. Some auto insurance companies have three-month, six-month and 12-month plans.

Their clients can pay their premiums for one of the terms listed above and avoid the administrative fees associated with these policies.

The Average Amount of Quarterly, Semi-quarterly and Yearly Plans

There would be no average amount that people who choose the three-month, six-month or 12-month plans to pay because what these people would be charged by their auto insurance companies will be an individual matter.

Auto insurance companies determine how much a person’s premiums will be based on the driving behavior of each applicant.

For example, the applicants’ driving records offer highly valuable information to auto insurance companies. A driving record that is clean makes the people at auto insurance companies feel confident that insuring these people means they would have reliable clients who always pay their bills on time. It also means they are responsible and careful drivers.

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Other Payment Plans

The applicants described above will be quoted the lowest auto insurance rates and because of this, they may be able to afford paying the premiums all in one lump sum for the year.

Those who will have to pay a little more have other choices they can make so that their auto insurance premiums are affordable.

The Average Down Payment for Those on an Installment Plan

If clients need a payment plan, many auto insurance companies will break up their clients’ payments into 12 equal installments for a year’s policy or six payments in a six-month policy. The average down payment will only be the first month’s installment.

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Avoiding Administrative Fees on Installment Plans

As people make their payments in monthly installments, they will need to pay the $10 in administrative fees that those who pay their premiums in one sum are able to avoid.

Auto insurance companies will give their clients an opportunity to avoid these fees with electronic debiting from their bank accounts. This option avoids all the paperwork associated with receiving a bill, writing a check and mailing it to the company.

Setting up electronic payments saves money as well as prevents the possibility of needing to pay several fees, including:

  • Late fees
  • Reinstatement fees
  • Mid-term cancellation fees

With electronic payment, auto insurance clients do not have to make sure they mail their premiums by the due date. Because people can forget to mail their payments at times, they have been charged late fees and have needed to pay fees to have their policies reinstated if they were canceled because of inadvertent non-payment.

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Monthly Installment Plans Offer Flexibility

Auto insurance is mandatory in most states, so most drivers have no choice but to purchase the auto insurance policy that appears to offer the best rates. Because they are paying monthly or have short terms such as the three-month policy, they are not making a commitment that is entirely too burdensome.

After auto insurance clients have obtained an auto insurance policy from one company, they may discover that another company will give them even better rates.

Those who did not pay all of their premiums in one sum but are paying monthly have an advantage: They can switch to the other auto insurance company without having to pay any fees.

Seek Affordable Coverage for Free

Anytime throughout the year, drivers can seek a better price for their auto insurance coverage. The Internet makes this extremely easy for people because they can automatically receive a variety of auto insurance quotes, and the only effort they would have needed to put in is to enter their zip codes into the appropriate field.

After doing this, they receive several free quotes.

Our comparison feature works exactly as has been described above, so people reading this article do not have to go in search of a comparison website.

They can go directly to our comparison feature, enter their zip codes and they will be presented with the most affordable rate quotes. This process is easy and only takes a couple of minutes to complete.

To use the FREE comparison tool below, simply enter your ZIP code to receive a list of available car insurance options!



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