Guidance from regulators to consumers on monthly auto insurance


10An overwhelming number of states in the country impose strict minimum levels of auto insurance required by vehicle owners. Some states like Florida have an alarmingly low level of minimum requirements set by the state as far as coverage from an auto insurance policy is concerned. There are serious penalties imposed on those drivers who don’t follow these norms for minimum auto insurance required. The penalty for driving without appropriate auto insurance is quite severe in states like Texas, where the fees imposed on those who violate the norms can be as high as 1000 dollars for the first offense. However, recent reports show that, for some of the vehicle owners, paying the upfront premium of 800 dollars to get the coverage stipulated by the state is nearly impossible, which is why they prefer to go without the insurance for short periods of time. However, being hit with large penalties or meeting with accidents that would cause a massive financial dent are two results that could prove troublesome.

Vehicle owners though can now shop around for insurance policies which have a low down payment and monthly installments. This way, policy holders can reduce the immediate financial burden for getting insured as per the state norms. There may be small monthly fee that needs to be paid every month. Nevertheless it is comforting for the vehicle owners to know that they are in compliance with the state norms. A few important facts for the customers of auto insurance, wanting to take up the option of monthly installments and smaller down payments, have been provided by the Texas Department of Insurance.

There is also a consumer bill of rights available to the public with provisions regarding the installment plans. According to the norms of the TDI, the consumer has the right to pay for the auto insurance in installments. The consumers will benefit from the right to divide the policy payment balance into 10 monthly installments for an annual policy. For a 6 month policy, the payment amount can be divided into 4 equal monthly installments. Apart from this, consumers will also be pleased to know that the down payment initially cannot be more than the coverage cost of 2 months. According to state regulators, consumers can also choose to use installment loans which are made by a finance company that will pay the lump sum. However, such loans might come with higher interest rates.