Auto Insurance Companies That Don’t Charge Extra for Paying Your Bill Manually (2021)

You won't find many auto insurance companies that don't charge extra for paying bills manually each month. Most car insurance companies that do charge extra for paying bills manually use fees to pay for administrative costs from payment processors, but some insurance companies waive these fees to $1 or less. If you pay your policy in full, you can avoid extra fees and save at least 5% on auto insurance. Shop around and compare multiple companies to secure the best rates.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Sep 28, 2021

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A Concise Overview

  • Most auto insurance companies have installment fees for monthly payments
  • Installment fees are as low as $1 per payment
  • You can save up to 5% off for paying bills electronically

Car insurance companies that don’t charge extra for paying bills manually are all over the United States. But which insurance companies have no extra fees when you pay?

Don’t worry – our guide explains how different car insurance payment options can affect hidden fees and why some car insurance companies charge extra for manual bill pay.

Also, we’ll explain why your payment method won’t affect auto insurance coverages.

After you learn about auto insurance companies that don’t charge extra for paying bills manually, enter your ZIP code in the free online quote tool above to compare multiple companies near you.

Which auto insurance companies don’t charge extra for paying bills manually?

Car insurance companies get rid of hidden fees or installment fees when you pay your insurance policy in full.

You can eliminate monthly payments when you pay off your auto insurance bill at the start of the policy. Therefore, auto insurance companies can avoid administrative costs from payment processing.

Also, you can secure a car insurance discount when you pay off the total balance.

If you decide to pay monthly auto insurance rates, you may have installment fees attached to monthly payments.

Why should I pay auto insurance in full?

Paying your car insurance policy in full avoids any extra fees you’ll have if you paid monthly insurance rates.

Policyholders who pay auto insurance bills in full limit payment cycles to once or twice per year. People who pay monthly make payments up to 12 times a year.

Some auto insurance companies can provide up to 8% off when you pay in full. If you qualify for other discounts, you can pay much less.

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Which auto insurance companies charge extra for paying bills manually?

Even the best car insurance companies have fees attached to monthly payments. Here’s a list of the top companies in the United States that have installment fees when you pay your bill each month.

  • Allstate
  • American Family
  • Farmers
  • GEICO
  • Liberty Mutual
  • Progressive
  • Nationwide
  • State Farm
  • Travelers

Each auto insurance company uses different payment processors. For example, GEICO’s payment processor may be different from Travelers’.

Therefore, the installment fee customers pay each month is a different price.

Also, manual payments allow you to keep track of car insurance increases. You have a right to ask why auto insurance rates go up, so express your concerns about your bill.

How can I make automatic payments to my auto insurance company?

Did you know some car insurance companies give discounts when you set up automatic payments?

For example, GEICO reduces monthly installment fees to $1 when you pay using electronic funds transfer (EFT).

You can set up automatic payments (AutoPay) at the start of the policy or during the policy. Use your debit card, credit card, or checking account to pay your bill.

Auto insurance companies give you an option to save the information on their system, and you can choose to make manual or automatic payments.

One tip we recommend for AutoPay is checking your account activity regularly. Car insurance may increase after a few months.

Monitor your auto insurance company’s activity to stay informed about any changes to your policy.

What are the pros and cons of automatic payments to auto insurance companies?

AutoPay is convenient. It takes away the hassle of calling an agent or customer service to make a payment. But there are some issues with AutoPay.

Let’s explore the advantages and disadvantages of automatic payments at car insurance companies.

Pros:

  • Payments are drafted from your account automatically each month
  • Some companies waive the installment fee when you set up EFT
  • AutoPay works with debit cards, credit cards, and electronic checks

Cons:

  • An increase in auto insurance will take out more than you expected
  • Changes in payment dates can make it inconvenient for your budget
  • Less control on how much is debited from your account

Another tip you should be aware of is the expiration date of your debit or credit card.

Keep your payment information current with your auto insurance company to prevent late payments, cancellation, or a lapse in coverage.

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Auto Insurance Companies That Don’t Charge Extra for Paying Bills Manually: The Bottom Line

Auto insurance companies that do charge extra for paying bills manually are covering fees from payment processors.

Policyholders who pay in full or use AutoPay can avoid extra fees. However, waived fees and discounts depend on the car insurance company.

Now that you know more about auto insurance companies that don’t charge extra for paying bills manually, use our free online quote tool below to compare multiple companies in your area.

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