Case study: Paying it forward
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.