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CAARP Introduction, Part IV: Commercial Auto
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Premium Payment Plans

The following options are available for Commercial Risks:

  • Full Annual Premium - If the premium check is inadequate the outstanding balance will be due within 30 days of the premium notice.

  • Advance Premium -
  • 25% of estimated annual premium or minimum deposit of $125, $1,000 or $2,000 per vehicle, whichever is greater. The minimum deposit depends upon the type of risk being insured:
  • $2,000 per power unit for Extra-Heavy Trucks & Truck-Tractors (includes all intrastate & interstate truckers.)
  • $1,000 per power unit for all other commercial vehicles (includes light commercial trucks, taxis, limos, vans, etc.)
  • $125.00 per private passenger auto on a commercial policy.

  • Installment Premium Plans -
  • Deposit of 25% of the estimated total annual premium or a minimum deposit per vehicle or power unit, whichever is greater, with the balance due within 30 days of premium notice.
  • 5-Pay Plan = five equal installments plus a $4.00 per installment fee.
  • 9-Pay Plan= nine equal installments plus a $4.00 per installment fee.
  • Additional premiums during policy term as a result of policy changes shall be divided equally between remaining installments.
  • If the policy is subject to audit any adjustments are billed immediately.
  • All policy changes resulting in additional premiums will be accompanied by a 25% deposit check prior to the servicing carrier issuing the change.


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© 2008, LunchTimeCE, Inc and AIPSO. All Rights Reserved.
Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation.
The authors, LunchTimeCE, Inc. and AIPSO, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.