Full-Payment Auto Insurance Discount

At least 17 major companies offer an affordable full-payment auto insurance discount to drivers. The average cost of a six-month auto insurance policy is $503, and the average price for a 12-month policy is $1,007. To qualify for a full-payment auto insurance discount, pay for your entire policy upfront instead of in monthly installments. Usually, full-payment auto insurance discount rates are 10.5% cheaper than average.

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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: Jul 15, 2021

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A Concise Overview

  • Currently, 17 national insurance providers offer a full-payment auto insurance discount
  • On average, you can save about 10.5% by earning this savings opportunity
  • To qualify, pay for your entire policy term in one lump sum instead of in monthly installments

You can save an average of 10.5% on your annual premiums by earning a full-payment auto insurance discount.

Whether you’re insuring two cars for the family or just one for yourself, keep reading to discover what companies offer this easy savings opportunity.

After comparing full-payment auto insurance discount rates, enter your ZIP code into our free tool above to receive quotes from the top providers in your region.

What companies offer a full-payment auto insurance discount?

If you want to buy full-payment discount auto insurance, you have plenty of companies to consider.

Currently, at least 17 major insurance providers offer a full-payment auto insurance discount to drivers.

Take a look at the full list below:

  • AAA
  • Allstate
  • American Family
  • Ameriprise
  • Amica
  • Country Financial
  • Esurance
  • Farmers
  • GEICO
  • Liberty Mutual
  • Progressive
  • Safe Auto
  • Safeco
  • The General
  • The Hanover
  • The Hartford
  • Travelers

It’s possible local companies in your region also offer this discount. However, remember that each company uses different qualification guidelines and provides customers with varying levels of savings.

Many personal factors also influence your annual premiums, like age, driving record, and coverage needs.

Therefore, the best full-payment auto insurance discount company for one person might not be the same for their neighbor.

Wondering how to buy auto insurance that is both affordable and comprehensive? Compare quotes from different companies online and ask about available discounts.

For example, it might be worth comparing the Travelers, Liberty Mutual, and GEICO discounts list to help you narrow down what company is most compatible with you.

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What is a full-payment auto insurance discount?

A paid-in-full auto insurance discount provides customers with a slight rate reduction because you’re paying for your entire policy upfront instead of in monthly installments.

According to the National Association of Insurance Commissioners (NAIC), the average cost of a six-month policy is $503, while the average price of a 12-month policy is $1,007.

Depending on what provider you use, this discount can save you an average of 10.5%. To qualify for these savings on your premiums, you must pay your total quoted amount at the time of signing.

Some companies automatically apply these savings to your policy without advertising the discount, known as hidden auto insurance discounts.

For example, there is no GEICO paid in full discount publicized online, but the company still reduces your rates if you pay upfront.

Full-Payment Auto Insurance Discount: The Bottom Line

For many people, paying for your auto insurance upfront can easily lead to a minor rate reduction.

This discount is also an excellent option for people with teens or high-risk driving records, as it helps mitigate the high cost of auto insurance for teens.

Now that you’ve learned about affordable full-payment auto insurance discounts, you can enter your ZIP code into our free tool below to receive quotes from the top companies near you.

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