Your insurance quote came in and the number is big. That is normal. For a lot of people with a truck, paying it all at once is not an option, because the money is already tied up in fuel, tires and the truck note. The good news is there are ways to pay it little by little. Here is how it works, without the fancy words.

Can you pay truck insurance in payments?

In many cases, yes. There are two main routes:

  • A plan from the insurance company. Some let you pay in parts. It depends on the company and the policy, so ask your agent.
  • Financing the premium. A premium finance company, like NatPrem, pays the insurance company for you. You make a down payment and pay us the rest each month, plus a finance charge.

"Premium" is just the fancy word for what your policy costs.

How it works, step by step

  1. Get your quote. Your agent quotes the coverage you need for your truck or dump truck: liability, physical damage, cargo, whatever applies.
  2. Say you want to finance it. Ask your agent: "Can I finance this with NatPrem?" Or call us directly.
  3. Read your agreement. Before you sign, it shows how much you are financing, the finance charge, the APR, each payment amount and the due dates. If something is not clear, ask. That is what we are here for.
  4. Make your down payment and sign. Then we review the agreement. Not every policy can be financed, and some insurance companies do not allow it.
  5. Make your payments each month. Once the agreement is accepted, the premium goes to the insurance company, and you pay us until you are done.

Why is the down payment so much?

This is the question we hear most. Many truck policies have a minimum earned premium: a part the insurance company keeps even if you cancel early. Since that money does not come back, the down payment normally has to cover it, along with certain fees that are not returned either.

That is why every policy is different. Your agent shows you the exact figure on the agreement. For more detail, read why your down payment is so high.

What paperwork do I need?

  • Your driver's license
  • Your business name and papers (your LLC and EIN letter, if you have them)
  • Your truck's details, with the VIN
  • Your USDOT and MC numbers, if they apply
  • The quote or policy number

Just got your MC? Read how to pay for insurance with a new MC.

What if I fall behind?

This is where you need to pay attention. When you finance, your policy is the collateral. If you stop paying, you get a written notice with the amount due and the deadline. If it is not paid, the policy can be canceled. In trucking that hits twice, because without insurance FMCSA can take your authority and brokers stop giving you loads.

If you can see you will not make it, call us before that date passes. It is much easier to fix beforehand. You may have rights under Texas law; ask us. And read what happens if your policy cancels.

Does financing always make sense?

Not always, and we will tell you straight:

  • If you can pay in full without running short, you avoid the finance charge.
  • If your insurance company has a plan that costs less in total, compare it first.

Financing helps when you would rather keep your cash working in the business. Look at the total, not just the first payment.

Tips to keep it simple

  • Set the payment aside from every load. Do not wait for the due date.
  • Treat this payment like the truck note. Without insurance, the truck does not work.
  • Keep your address and phone current. Notices go to the details we have on your account.

Talk to us

NatPrem is a premium finance company licensed by the Texas Department of Insurance (license No. 3036548). We speak Spanish and English, and we will take the time to explain everything. Call (214) 586-3155 or contact us.

NatPrem finances insurance premiums. We do not sell insurance. If you still need a trucking insurance quote, our sister agency, Protec Consulting Group, can help.