Our top pick: Progressive
- Broad coverage
- Transparent pricing tools
- Accident forgiveness on small claims
- Stack a variety of discounts for multiple cars
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With most car insurance companies, you’ll get a discount on your policy by paying the entire cost up front rather than making payments each month. Learn about the benefits of paying your policy in advance to help you get the best value on your coverage.
How much you stand to save will depend on which company you go with and what level of coverage you’re purchasing. The average amount you can expect to save ranges from 8% to 10%. Here are a few of the top providers and the prepay discounts they offer.
Should you really fork over hundreds of dollars at one time just to save a few dollars? That depends on your financial situation and what you’re prioritizing. If you’re trying to save money on your bills, paying your premium up front can save you in the long run — even if it’s only $50 to $150 a year.
However, if you can’t hand over hundreds of dollars up front, making smaller payments may be your only option. Sometimes, that convenience outweighs the overall savings.
The only way to get a paid-in-full discount is to pay in full at the start of your policy term. You can get similar — though usually less substantial — discounts by splitting your total cost into two payments, rather than the standard six. To find out if your insurer offers a discount for paying your policy up front, get in touch with an agent.
Jill is comparing car insurance quotes and sees she can save 10% on her bill with a paid-in-full discount. Instead of paying $1,000 total over 12 monthly payments of $83, she’ll pay $900 for her 12-month policy — which breaks down to $75 monthly payments.
She’ll pay about $8 less each month and save $100 over the year. Since she can afford to pay her whole bill at the beginning of the policy term, she opts to switch to a one-time, up-front payment to get the discount.
If you don’t want to pay a large bill all at once, you may be able to find equivalent savings through other discounts:
If you can afford to pay your entire premium for the year, you stand to save on car insurance if your provider offers a paid-in-full discount. Research and compare car insurance companies to find the best deal for you.
A youth savings account with a whopping 7% APY on account balances up to $1,000.
Get a low rate guarantee, but you won’t know if you’re eligible until you apply.
A high-yield savings account that supports multiple currencies.
A must-have for parents looking to teach their little ones healthy money habits early on.
Offers reduced-rate, no-closing-cost HELOCs, but only in specific states.
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