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Full Payment Car Insurance Discount

Enter your zip code below to view companies that have cheap auto insurance rates.

Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: Feb 9, 2021

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Key Takeaways

  • Most national insurance providers will give you a full payment car insurance discount if you pay for your full six or 12-month policy upfront.
  • On average, you can save around 10.5 percent on your car insurance policy with a full payment car insurance discount.
  • To qualify for this discount, you need to pay for your full six-month or annual auto insurance policy at the time of signing your contract.


Most national insurance providers will give you a full payment car insurance discount if you pay for your full six or 12-month policy upfront. This discount can help you save an average of 10.5 percent on your overall rates.

Read our quick guide to learn what providers offer a full payment discount and how you can qualify to earn cheap car insurance rates.

Enter your ZIP code into our free quote tool above to immediately compare rates from reputable providers near you, and ask about different hidden car insurance discounts.

What car insurance companies offer a full payment car insurance discount?

Every car insurance company offers different discount opportunities with different eligibility requirements.

Does your provider have a full payment car insurance discount? Compare full payment car insurance discounts by company in the table below.

Full Payment Discount Offered by Company
CompaniesFull Payment Discount Offered
AAAYes
AllstateYes - 10%
American FamilyYes
AmeripriseYes
AmicaYes - 4%
Country FinancialYes
EsuranceYes - 10%
FarmersYes
GEICOYes
Liberty MutualYes - $5 per month
ProgressiveYes
Safe AutoYes - 5%
SafecoYes - 15%
The GeneralYes - 8%
The HanoverYes - 15%
The HartfordYes - 20%
TravelersYes - 7.5%
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Seventeen major insurance companies offer this style of discount, but which car insurance company is cheapest? The Hartford provides the largest savings at 20 percent. Liberty Mutual will remove a monthly $5 processing fee.

If your provider isn’t on this list, consider shopping around for one that will provide you with this discount.

What is a full payment car insurance discount?

A full payment car insurance discount rewards customers for responsibly paying for car insurance in advance. How much does car insurance cost on average? Full coverage can run you about $709 for a six-month policy or $1,418 for a 12-month policy.

Because your provider will not have to worry about you missing any future payments, you are rewarded with a discounted rate.

You can pay for a full six-month policy, 12-month policy, or quarterly in some states.

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How can I qualify for a full payment car insurance discount?

To qualify for a full payment car insurance discount, first, verify that your provider offers this opportunity. Then pay for your full policy at one time upfront.

According to the Insurance Information Institute (III), car insurance is required in almost every state, but the laws and regulations vary drastically. Therefore, this discount may not be available in some areas.

How much can I save with a full payment car insurance discount?

While full coverage insurance costs $1,418 annually, according to the National Association of Insurance Commissioners (NAIC), the average insurance rates are actually closer to $1,005 for a 12-month policy.

If you’re able to pay that amount in full upfront, expect to save around 10.5 percent on your car insurance with a pay-in-full discount.

However, your actual full payment car insurance discount rates will vary by insurance company.

You are now an expert on securing a full payment car insurance discount. There are plenty of car insurance discounts to ask for that can help you save money.

Take note of ones you believe you are eligible for and ask your agent about them. While discounts often get applied to your policy automatically, sometimes things can slip through the cracks.

Secure an affordable full payment car insurance discount and compare car insurance rates from reputable providers near you by entering your ZIP code into our free quote tool below.

References:

  1. https://www.iii.org/article/background-on-compulsory-auto-uninsured-motorists
  2. https://content.naic.org/article/news_release_naic_releases_20162017_auto_insurance_report.htm

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