Full Payment Car Insurance Discount
A full payment car insurance discount can help you save anywhere from 8 to 20 percent on your car insurance costs. Full payment may not be a financially responsible choice for you to make, but if you can afford to make this payment, you could save up to 20 percent on your auto insurance rates. Read more to learn about the full payment discount and how you can save money.
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UPDATED: Jul 16, 2021
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- Car insurance companies will offer you a discounted rate if you pay your entire premium in advance
- Full payment discounts can range from 8 to 20 percent on average, but every car insurance company is different
- Full payment discounts are generally automatically applied to your policy when you pay your premium
A full payment car insurance discount is an easy way to save on your car insurance costs if you can afford to pay your premiums all at once.
Just like most things that you renew or pay on a monthly basis, car insurance is cheaper if you pay for your 6-month or 12-month period all at once.
Car insurance companies will typically discount your car insurance rates anywhere from 8 to 20 percent if you pay your entire premium at one time. This is an incentive to encourage you to pay for your entire car insurance coverage upfront.
Depending on your current financial situation and your car insurance costs, paying your entire premium upfront may not be possible for you. However, there are other car insurance discounts you can apply for to help save you money on your rates.
If you’re ready to compare full payment car insurance quotes in your area, enter your ZIP code above to compare quotes from the top companies in your area.
What is a full payment car insurance discount?
When you get a car insurance quote from an insurance company, they will give you the monthly rate and the entire premium rate or the paid-in-full price.
For the sake of an example, let’s say that you were quoted at 25 dollars a month for liability car insurance. Insurance companies will show you a monthly rate of 25 dollars and then a full price.
For this example, let’s say that you see a full price of 125 dollars for six months of car insurance coverage. The full discount is one whole month or 25 dollars. In this situation, that comes out to a 16 percent discount of the month-to-month cost of 25 dollars over six months.
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Which companies offer a paid-in-full discount?
You would be hard-pressed to find a car insurance company that did not offer a full payment discount. For example, there is Progressive’s paid-in-full discount, among many others.
Most companies don’t provide specific information about how much you can expect to save when you pay-in-full.
However, even though companies will not offer specific information regarding their paid-in-full prices, you will be able to see your paid-in-full price when you get a quote on your car insurance.
If you’re looking for other ways to save on your car insurance costs, you can read this helpful article from the Insurance Information Institute. There are a number of other discounts that you can combine with a full payment discount to save even more money on your car insurance.
If you’re ready to compare full payment car insurance discounts from the top companies in your area, enter your ZIP code below.