How to Get a Full Payment Discount

Most major insurance companies offer a full payment discount if you pay off your entire premium in one lump sum. The pay-in-full discount percentage varies from company to company so be sure to compare quotes from multiple insurers to find the best deal. Customers who opt for the full payment discount save anywhere from 5% to 20% on their auto insurance premium.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jun 21, 2021

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Things to Remember

  • A full payment discount is a discount on your total premium for paying it all in one lump sum
  • You can receive a full payment discount on both six-month and twelve-month policies
  • Customers typically save between 5% and 20% with a full payment discount

No one likes having to pay their monthly auto insurance rate. But did you know you can stop making monthly payments and save money on your rate with a full payment discount?

Some insurance companies offer a full payment discount if you pay your entire auto insurance premium in one lump sum instead of paying a portion month after month. This is only one of the many auto insurance discounts companies offer.

Keep reading to learn how to get a full payment discount, how much you can save, and which companies offer this discount. First, enter your ZIP code into our free comparison tool above to find affordable auto insurance near you.

How do I get a full payment discount?

Many auto insurance companies offer a full payment discount or a pay-in-full discount if you agree to pay your entire auto insurance premium in one lump sum. You will have to pay the discounted rate by the date of your first billing payment.

This means instead of paying a portion of your auto insurance premium month after month for the duration of your policy, you can eliminate the hassle of monthly payments by paying all at once.

Not only does this help eliminate the stress of making monthly payments, but you’ll also save money on the total of your auto insurance premium. You’ll have to check with your insurance provider to see if they offer this discount, but many of the best auto insurance companies do.

The pay-in-full discount percentage varies from company to company, so you’ll have to compare auto insurance quotes from multiple companies to find the best rate. The Insurance Information Institute recommends you compare policies from at least three different insurers.

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How much can I save with a pay-in-full discount?

So how much can you save with a pay-in-full discount? Well, percentages vary from company to company but generally speaking, you could save as little as 8% to as much as 20% on your total auto insurance premium.

Most full payment discounts are paired with six-month auto insurance policies. However, if you sign up for a twelve-month policy, you’ll still be able to receive a full payment discount by making one-half payments every six months.

If you’re worried about not making your payment on time, try signing up for automatic payments. Not only will you never be late for a payment, but you can also save more with an automatic payment discount of $50 to $100.

Which companies offer a full payment discount?

Now that you know about full payment discounts, you’re probably wondering which companies offer a full payment discount.

Fortunately, most of the top auto insurance companies offer a full payment discount with great savings. For example, with a Progressive full payment discount, customers save an average of 15% on their total premium. However, this discount is not available in every state.

There is no official GEICO full payment discount, but GEICO customers who pay their entire premium at once will end up paying less overall due to GEICO’s monthly installment fees. The savings won’t be huge, but you can still end up saving about 5%.

Check out the table below to see which of these top auto insurance companies offer a full payment discount.

Best Discounts by Insurance Provider
DiscountsThe General21st CenturyAAAAllstateAmerican FamilyAmeripriseAmicaCountry FinancialEsuranceFarmersGeicoLiberty MutualMetLifeNationwideProgressiveSafe AutoSafecoState FarmThe HanoverThe HartfordTravelersUSAA
Adaptive Cruise Control
Adaptive Headlights
Anti-lock Brakes
Anti-Theft
Claim Free
Continuous Coverage
Daytime Running Lights
Defensive Driver
Distant Student
Driver's Ed
Driving Device/App
Early Signing
Electronic Stability Control
Emergency Deployment
Engaged Couple
Family Legacy
Family Plan
Farm Vehicle
Fast 5
Federal Employee
Forward Collision Warning
Full Payment
Further Education
Garaging/Storing
Good Credit
Good Student
Green Vehicle
Homeowner
Lane Departure Warning
Life Insurance
Low Mileage
Loyalty
Married
Membership/Group
Military
Military Garaging
Multiple Drivers
Multiple Policies
Multiple Vehicles
New Address
New Customer/New Plan
New Graduate
Newer Vehicle
Newly Licensed
Newlyweds
Non-Smoker/Non-Drinker
Occasional Operator
Occupation
On Time Payments
Online Shopper
Paperless Documents
Paperless/Auto Billing
Passive Restraint
Recent Retirees
Renter
Roadside Assistance
Safe Driver
Seat Belt Use
Senior Driver
Stable Residence
Students & Alumni
Switching Provider
Utility Vehicle
Vehicle Recovery
VIN Etching
Volunteer
Young Driver
Discounts Provided #20212129271827263434323838353622302022382828
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Now that you know all about full payment discounts, start shopping for auto insurance today. Enter your ZIP code into our free comparison tool below to buy auto insurance from providers in your area.

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