Is This New Down Payment Requirement Normal for Car Insurance?

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Is it just me, or is everyone facing this new requirement for large down payments? I’ve been with Progressive for years with excellent credit and a clean driving record, but now my renewal is coming up on 10/6 and they’re increasing my monthly premium by $100. For me to even renew, they’re asking for two months’ payment upfront, which has never been an issue in the past six years.

I’m shopping around for policies, but every company I check is demanding 2-4 times the usual upfront payment. Allstate quoted me $200 per month, but they want $1000 to start the policy. What’s happening with car insurance these days?

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Insurance companies are exploring ways to boost their earned premiums. They believe that customers who make larger down payments are less likely to cancel their policies early on. I’m surprised that your renewal didn’t offer more flexible payment options.

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Are there usually more choices available? In my experience, I’ve only been offered the option to pay in full or monthly.