What happens to my down payment (collateral/security deposit) at the end of my policy term?

In all cases, collateral is transferred to the new policy term at renewal. If your policy changes from reporting to annual prepaid or installments, the collateral is transferred to the down payment at renewal. Collateral on your billing statement reflects the collateral charge for the policy term. Collateral adjustment is the transfer of collateral held from one year to the next.