Why Do You Face Deposits?
This often occurs when the driver is new to the company. If the driver has a poor credit score, they may also require it. The most common time for this to occur is if you do not pay for the entire cost of your premiums upfront.
Should You Pay in Full?
However, if you cannot pay for the policy in full upfront, talk to the company. Many allow you to make payments. If you cannot make a deposit amount, let the agent know this, too. Many will work closely with you to make it affordable for you.
What Does the Deposit Pay for Then?
Having proper auto insurance is critical. Paying for it does not have to be a challenge. Most companies will work closely with you to find the right balance for your needs. Be sure to ask your agent about any discounts available to you for paying the full balance off at one time as well. This may save you a substantial amount.