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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Compare paid-in-full car insurance discounts
Save up to 10% on your car insurance by paying up front.
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 will I save by paying up front?
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.
- Allstate. The Allstate discount for paying up front will save up to 10% off your entire policy.
- Travelers. The list of discounts with Travelers includes a pay-in-full car insurance discount worth 7.5% off your insurance policy.
- Farmers. The Farmers Insurance website isn’t clear on how much you stand to save by paying your policy up front, but judging by industry averages, you could expect to save 8% to 10%.
- Progressive. Wtih Progressive’s discounts, you’ll get a break for paying your policy up front, though how much isn’t specified on its website. Expect the industry standard of 8% to 10%.
When is paying up front worth it?
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.
How do I get a paid-in-full discount?
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.
Compare car insurers with payment discounts
Pros and cons of different payment frequencies
Paid up front
- Rate is locked in
- Discount or savings for paying in full
- Bill is taken care of for the year
- Have to budget for large payment at once
- Cash is no longer liquid
- Have to wait for a refund if canceling mid-policy
Monthly payments
- Cash is available for other purposes
- Down payment usually required
- No rate lock
- Slightly higher rate
- Risk of missing payment without autopay
Pay as you drive
- Upfront deposit often required
- Inconsistent for budgeting
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.
What other discounts should I look for?
If you don’t want to pay a large bill all at once, you may be able to find equivalent savings through other discounts:
- Good student discount. If you’re a full-time student with a GPA above 3.0, you likely qualify for a discount on auto insurance for being a good student in the range of 10% to 15%. Most insurers have conditions and stipulations about age and full-time status, but you won’t know until you check with your insurer.
- Military discount. Whether you’re active service, in the reserves or a veteran, most major companies offer a military discount between 5% to 10% for your service to our country.
- Occupational discount. Do you work in education, health care, for the government or for a nonprofit? If so, dropping your employer’s name or the names of professional organizations you’re affiliated with could net you an occupational discount between 5% to 15%.
- No claims discount. If you’re a safe driver and haven’t filed any claims in three years or more, you probably qualify for no claims discount on your premiums or a reduced deductible.
- Hybrid discount. Some companies offer a 5% to 10% discount if you drive an electric car or a hybrid. You could also get a discount if your vehicle has an extremely good fuel economy, or if it’s rated to a certain level for low emissions.
Bottom line
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.
Common questions about paid-in-full discounts
Picture: Shutterstock
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