If I buy a NJPAIP Car Insurance policy, how do I pay the premiums and how are they calculated?
Thirty percent down and five installment payments over the first 9 months of the policy. The installments shall be due on the 45th, 90th, 150th, 210th, and 270th day from the policy effective date.
The first NJPAIP installment bill shall reflect the current annual premium minus the deposit and annual installment charge to arrive at the outstanding balance. Twenty percent of the balance should be identified as the installment amount. The due date for the first installment will be 45 days after the inception of the policy. The remaining installments will be billed according to the intervals stipulated above. An installment bill will be released to the applicant with a copy to the producer according to the above time intervals until the outstanding balance is eliminated. Each installment bill shall display the amount due.
Another option is to use a Premium FInance Company that would pay your policy for the entire year and you make equal monthly payments to the premium finance company. This options usually has a much lower downpayment.