Car Insurance Payment Discounts
Car Insurance Payment Discounts
Auto insurance discounts come in many forms. For example, you can get reduced rates for having a good driving record, taking driver training, having low mileage, and more.
One of the most overlooked ways to save money on insurance, however, is by paying your car insurance premium in a way that your insurance provider prefers – on time, in full, or via automatic or paperless billing.
Full Payment Discounts
Many auto insurance providers offer discounted car insurance rates for paying your premium in full, rather than in monthly installments.
For example, say it's time to renew your current car insurance coverage and you're sent or e-mailed a bill for $531 covering the next 6 months of your policy. If you immediately pay the entire $531 amount, you can get an immediate discount on your premium.
Depending on your car insurance provider, a full payment discount could save you around 5 to 10%.
Prompt Payer Discounts
Paying your insurance premium on time is essential. It can protect you from having gaps in your coverage, which can lead to fines, license suspension, and financial ruin in the case of an accident. But did you also know that regular on-time payment can get you a discount?
Many car insurance companies offer a discount for paying your car insurance on time. The prompt payment discount is awarded to drivers who make their policy payments for a specified period of time.
While not every auto insurance company offers a prompt payer discount, it is one of the easier auto insurance discounts to take advantage of.
Automatic Payment Discounts
In order to make sure that they make their payments on time and have no lapses in coverage, many drivers elect to set up automatic payments with their car insurance company.
With automatic payment setup, your payments will be withdrawn from your checking or savings account each month.
Automatic payment can save you money on your premium and can also make your life easier by eliminating the need to keep up with your payments every month. You can rest assured that your premium is being paid, eliminating the risk of accidentally losing coverage due to late payment/nonpayment.
When you consider that most states have laws requiring car insurance, it's clear how important it is to not allow a coverage lapse; when you do so, you might end up breaking the law.
If your car insurance company offers an automatic payment discount, consider it. It's an easy way to save money on your premium and simplify your life.
Paperless Billing
Many businesses today are attempting to increase their environmental sustainability, and car insurance companies are no different. One of the ways auto insurance providers are doing so is by rewarding their customers financially for helping their efforts.
When you agree to forgo paper statements for paperless/Internet billing, you may be eligible for a discount.
Paperless billing means that instead of receiving your bill via the mail, you'll get an e-mail statement. You can then pay your bill online via a valid credit/debit card or e-check.
Make sure to check with your car insurance provider to see which payment discounts are available to you.
