Paid-in-Full Car Insurance Discount: How to Qualify, Potential Savings, and More
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Written byMandy Sleight
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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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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Table of contents
Some insurance companies offer a paid-in-full discount when you pay your full car insurance policy bill up front. How much you can save depends on your insurer and state, but generally, the paid-in-full discount can lower your rate by up to 15%. Progressive, Travelers, and Auto-Owners are a few auto insurance companies offering a paid-in-full discount.
Keep reading to learn how much you can save, where to get the discount, and other ways you can lower your car insurance costs.
How Much You Can Save With a Paid-in-Full Discount
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Though paid-in-full discount savings can vary by car insurance company and state, you can usually save between 5% and 15%. For example, California and New York drivers usually can’t get a paid-in-full discount because state laws don’t allow insurers to use certain financial-based rating factors (like your credit history, for example) and discounts in car insurance pricing.
We found the highest discount through Progressive, which offers up to 15% savings for commercial auto policyholders. Its website doesn’t specify how much personal auto customers can save. Still, the savings are usually similar for both types of insurance.
How to Get a Paid-in-Full Discount
Most car insurance companies offer multiple payment options so you can choose the most convenient way to pay your premium. If you’re able to pay it all up front, you can qualify for a paid-in-full discount if your insurer offers one. You typically have to pay the total premium in a lump sum and by the effective date of the policy to qualify.
It’s a good idea to check with your company for the details and conditions to qualify. In most instances, you can choose your preferred payment method, whether you want to use your bank account, credit card, or debit card. The discount should be automatic when you make the payment in full.
Where to Get a Paid-in-Full Discount
The paid-in-full discount isn’t as common as other auto insurance discounts. Still, it’s available from several well-known and lesser-known insurance companies.
The table below shows the auto insurers currently offering a discount for paying your car insurance premium in full up front.
Company | Advertised Discount |
|---|---|
| Travelers | Up to 7.5% |
| Auto-Owners | Varies |
| The Hartford | Varies |
| Progressive | 15%* |
| Allstate | Varies |
| AAA | Varies |
| Amica | Varies |
| Kemper | Varies |
| American Family | Varies |
| Erie | Varies |
| Farmers | Varies |
| National General | Varies |
*Advertised savings are for commercial auto insurance policies.
Most car insurance companies don’t advertise the total discount premium savings you can earn when you pay the entire term in a lump sum instead of monthly payments.
That said, Travelers advertises up to 7.5% in savings, while Progressive offers up to 15% in savings on commercial auto insurance policies. This range is a good indicator of how much you can save on auto coverage with a pay-in-full discount.
How to Maximize Your Paid-in-Full Discount Savings
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If you’re looking to maximize your savings and get the most out of your auto insurance policy, paying for coverage in full is a great start. Some other things you can do to save even more include:
Be a safe driver. Good drivers get the best perks. Avoiding tickets and accidents helps you get the lowest rate for car insurance coverage. It can also make you eligible for accident forgiveness, which can prevent a rate increase if it’s your first accident.
Consider a higher deductible. If you need comprehensive and collision coverage, you can lower your premium by choosing higher deductibles. That means taking on more financial responsibility if you have to file a claim — just make sure you can afford to pay the higher out-of-pocket cost.
Compare quotes. Insurance prices vary by insurance company, so comparing the same coverage limits and deductibles from several companies can provide peace of mind that you’re getting the best price for your coverage needs.
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Other Common Car Insurance Discounts
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Auto insurers offer a wide variety of discounts that you can combine to get the most savings. So, even if you can’t pay a lump sum to lower your total premium with a paid-in-full discount, other car insurance discounts are available.
Consider the following discounts for additional savings:
Multi-policy: Bundle your auto and home insurance with the same insurer for a multi-policy discount. The discount may also be available with other insurance products, like motorcycle, mobile home, condo, renters, and life insurance.
Good student: Full-time students in high school or college with good grades (i.e. who earn a B average or better) may qualify for a good student discount.
Student away at school: College students who go to school at least 100 miles away from home and don’t take a vehicle with them can get a student away at school discount.
Usage-based insurance: Enrolling in your insurer’s telematics program and practicing safe driving habits can help you become a better driver and qualify for a telematics discount.
Automatic payments: When you can’t pay in full, consider setting up an auto-draft payment to get an auto-pay discount and potentially waive installment fees.
Loyalty: Staying with the same insurer for two or more consecutive years can make you eligible for the loyalty discount.
Paperless discount: Many insurers offer a lower premium when you sign up for paperless billing and electronic policy documents.
Paid-in-Full Discount FAQs
We answered the most common questions about the paid-in-full discount to help you understand how this discount can save you money on your auto policy.
A paid-in-full discount is savings you can get on your insurance policy when you pay the entire term at once instead of making installment payments. An insurance policy term is typically six or 12 months.
Some insurers offer a paid-in-full discount when you pay your insurance premiums for the entire term when you start a new policy or renew your current policy. If you see a paid-in-full discount available from your insurer, you can generally save between 5% and 15% on your premium by making a single full payment rather than paying monthly.
Your car insurance says “paid in full” when you pay the entire policy term premium. For example, if your six-month policy premium is $1,000 and you pay $1,000 by the fourth month, then you’ve paid your policy in full. No premium payments will be due in the fifth and sixth months.
Our research found the highest paid-in-full discount percentage is typically 15%, but the amount can vary by insurance company and state. If you can pay your policy premium in a single payment, it may be worth comparing quotes from several companies to see which insurer offers the most savings.
You can get a paid-in-full discount when you pay your total insurance premium at the start of your policy, whether you’re starting a new policy or renewing an existing one.
Sources:
Insurance Information Institute, “Nine ways to lower your auto insurance costs,” accessed October 11, 2024.
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Mandy SleightInsurance Writer
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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.