Automatic Payments Car Insurance Discount: How to Qualify, Potential Savings, and More
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Written byJ.J. Starr
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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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An automatic payments discount is an incentive some auto insurance companies offer for setting up automatic bill payments. Many insurers — like Allstate, Direct Auto, and GEICO — encourage auto pay because it lowers the likelihood of missed payments and canceled policies.
The automatic payments discount is an easy way to save money on car insurance. Savings differ by company, but around 5% off your premium is typical, according to our research. Combining auto pay with other discounts will usually earn you an even larger rate reduction.
Read on to find out which insurers offer the best auto-pay discounts and how to maximize your savings.
How Much You Can Save With an Automatic Payments Discount
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The benefits of automatic payment discounts vary based on your insurer and your state. Typically, you can earn the discount just by setting up auto pay, but eligibility rules differ by insurer. For example, some companies may require you to make payments directly from your bank account (rather than via credit or debit card) to qualify.
The largest auto-pay discount we found is 5%, but some insurers may offer higher savings rates depending on where you live and your payment method.
Autopay also offers additional benefits, such as peace of mind from knowing you’re paying your premiums on time and avoiding any lapse in coverage.
How to Get an Automatic Payments Discount
Qualifying for this monthly discount is straightforward. Most insurers require you to set up recurring payments directly from a checking account, usually through electronic funds transfer (EFT) or an automated clearing house (ACH) payment.
Still, some insurers allow you to pay by credit or debit card. You can generally enroll in auto pay anytime to earn the discount with most insurance companies, though some restrict enrollment to renewal periods.
Follow your insurance company’s terms when enrolling in auto pay to ensure you get the discount. The process usually involves logging in to your insurer’s website or mobile app and enrolling online. You’ll need your bank account information — like your bank account and routing numbers — to complete the setup.
Once enrolled, the discount should apply automatically as long as you maintain uninterrupted payments. Also, remember to update your payment information anytime your account number changes or your credit card expires to avoid missed payments and losing the discount.
If you have questions about setting up auto pay, contact your insurance agent.
Where to Get an Automatic Payment Discount
Many major insurance companies offer an auto-pay discount or other billing-related discounts. Some offer incentives to use auto-pay because lowering the rate of policy cancellations saves the company money. That said, the amount you save varies significantly depending on the company, and few insurers advertise specific discount amounts.
Keeping in mind that some insurance companies may offer larger, unadvertised savings, here’s a look at the best car insurance companies we could find offering the largest automatic payment discounts.
Company  | Advertised Discount |
|---|---|
| Allstate | Up to 5% |
| Direct Auto | Up to 5% |
| GEICO | Up to $36 annually |
| American Family Insurance | Varies |
| Progressive | Varies |
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The Best Auto-Pay Discounts Currently Available
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Auto-pay discounts are common and a smart way to save on car insurance with minimal effort. With advertised savings of up to 5%, these discounts keep your premium low while ensuring your payments are always on time.
Here are the top insurers with the most significant auto-pay discounts this year, along with each company’s average monthly premiums and Compare.com Rating.
Allstate
Advertised discount amount: Up to 5%
Average premium: $101 per month
Compare.com Rating: 4.93 out of 5
Allstate offers the “Easy Pay Plan” discount for a smaller installment fee and 5% savings if you set up automatic payments, but only through your bank account. While you can use a credit or debit card for automatic payments, Allstate doesn’t appear to offer discounts for these payment methods.
Direct Auto
Advertised discount amount: Up to 5%
Average premium: $145 per month
Compare.com Rating: 3.76 out of 5
Direct Auto offers savings of up to 5% for setting up automatic payments through a checking account. This discount allows you to save while ensuring reliable monthly payments (crucial for drivers with a history of insurance lapse). By submitting one form, you can avoid missed payments and maintain continuous coverage.
GEICO
Advertised discount amount: Up to $36 annually
Average premium: $88 per month
Compare.com Rating: 4.65 out of 5
GEICO offers an auto-pay discount when you enroll in EFT payments. Doing so can save you up to $36 annually. The discount applies automatically after you set up EFT, making it easy and convenient to get additional savings on GEICO’s already cheap rates.
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How to Maximize Your Automatic Payments Discount Savings
Setting up auto pay is an easy win, but you can unlock even more savings with a few strategies. Here are some tips to help you maximize your savings:
Review payment details: Always verify your payment information is correct so you never miss a payment.
Ask to review discounts: Speak with an agent about your discount opportunities.
Combine payment discounts: Some insurers offer additional discounts for things like paperless billing and paying your premium in full.
Maintain a good payment history: Consistent on-time payments may qualify you for a good payer (also called a responsible payer) discount.
Use EFT: Enrolling in EFT can help you save — plus, some insurers require you to set up EFT payments directly from your bank account.
Bundle insurance policies: Multi-policy discounts for bundling auto insurance with home or renters insurance usually provide a big discount.
Other Common Car Insurance Discounts
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Automatic payments are just one way to reduce your insurance costs, but you can usually get additional car insurance discounts that are easy to get. Options vary slightly depending on your insurer and may include:
Paperless billing: For modest savings, you can opt to receive policy documents and bills electronically. GEICO, Auto-Owners, and others offer this service.
Pay in full: Most insurers offer a sizeable discount for paying your entire premium up front. Direct Auto, for example, offers 9% off for paying in full.
Early quote: Also called an advanced quote discount, purchasing a policy in advance may qualify you for a discount. Remember, rules vary by insurer.
Policy renewal: A type of “loyalty discount,” many insurers offer this popular discount automatically when you stick with the same company.
Automatic payments Discount FAQs
Here are answers to some of the most common questions to help you take advantage of the automatic payments discount.
What’s the maximum automatic payments discount percentage?
The largest advertised discount we found is 5% from Allstate and Direct Auto. But most insurers don’t publish the value of their auto-pay discount. You may find a better discount depending on the car insurance company and your state.
How do you get an automatic payment discount?
Enroll in your insurer’s auto-pay option to get the discount, typically by setting up EFT or recurring credit card payments. You can usually set this up through your insurer’s website or app or by calling customer service.
How do you know if you qualify for an automatic payment discount?
Most policyholders qualify for the automatic payment discount as long as they set up automatic withdrawals from their bank or credit union. Contact your insurer or check your policy’s discount information to confirm you have the discount.
Can you lose your auto-pay discount if you miss a payment?
Yes, you could lose the auto-pay discount if you miss a payment. Your insurer may also charge late fees or cancel your policy if your premium goes unpaid past your grace period — typically 15 to 30 days (according to your policy documents). Always double-check your payment information and funds.
Sources:
Kelley Blue Book, “7 Biggest Car Insurance Discounts for 2024,” accessed November 7, 2024.
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J.J. StarrInsurance Writer
J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.