state law Minimum Auto Insurance Down Payment Found to be Affected

Minimum Auto Insurance Down Payment Found to be Affected ; Minimum Auto Insurance Down Payment Found to be Affected by State Law, OnlineAutoInsurance.com provides resources for consumers who need information on low down payment and monthly insurance options.

Statistics have shown that as the unemployment rate rises, so too does the uninsured motorist rate. And with the percentage of Americans unemployed at its highest in years, it can be deduced that the current proportions of drivers who lack auto insurance coverage is also at a high point. The Insurance Information Institute has asserted that the recession has led to some dicey financial decisions on the part of American drivers, and it estimates the uninsured motorist rate to be approximately 18 percent for 2010.

For those who are considering joining those who have dropped coverage, switching to a low down payment auto insurance policy with monthly installments is likely to prove a much safer option. This enables the driver to maintain coverage without necessitating the payment of an entire premium in one lump sum. The question of how large the up-front costs will be, though, is dependent both on the general practices of the coverage provider and on state law.

Texans who go this route have certain legal provisions in place that cap the amount an insurer can charge them up front. According to the consumer bill of rights, drivers purchasing a policy that will be paid in installments can be charged a maximum of two months’ worth of coverage at the outset.

But Floridians, on the other hand, have a state statute that establishes a minimum amount that coverage providers must collect as a down payment on a new car insurance policy. Providers of policies must charge first-time customers an amount equal to two months’ worth of premium in order to be in compliance with state law. Read More...