How to Get an On-Time Payments Discount

You can save 15% on your auto insurance rates with an on-time payments discount. Making your auto insurance payments on time will not only get you a discount but will also keep your coverage intact and increase your credit score. Bundle your on-time payments auto insurance discount with other discounts you're eligible for to save the most money.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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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 and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 30, 2021

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Things to Remember

  • Save up to 15% on your auto insurance with an on-time payments discount
  • Only five companies offer you a discount for paying your car insurance on time
  • Combine other discounts with your on-time payments auto insurance discount to save even more

Drivers are always looking for ways to lower their rates, and car insurance discounts are an easy way to save money. An on-time payments discount rewards you for simply paying your bills when they are due.

While not all auto insurance companies offer an on-time payment discount, some of the top insurers offer up to 15% if you pay on time. Keep reading to learn how to get an on-time payments discount on car insurance and other ways to save.

Since rates and discounts are different with every company, shop around before you buy auto insurance with an on-time payments discount to see which company can offer you the best deal.

Enter your ZIP code now to compare free quotes from multiple auto insurance companies near you.

Where can you get an on-time payments auto insurance discount?

Insurance companies believe that drivers who pay their auto insurance on time are generally more responsible and easier to deal with, and they want to reward those drivers with a discount.

It can be hard to find auto insurance quotes with an on-time payments discount because only five companies offer the savings. However, you can easily qualify for the discount if you know where to look.

These are the only auto insurance companies with an on-time payments discount:

  • Allstate
  • Farmers
  • Safe Auto
  • The Hartford
  • Travelers

While these companies offer variations of the discount, Travelers offers drivers 15% off of auto insurance rates with an on-time payments discount.

If you have car insurance with one of these five companies, make sure you take advantage of the discount for paying your bill on time. It’s an easy way to save money.

How does making auto insurance payments on time affect your rates?

There are many different factors that affect auto insurance rates. Your age, driving record, and even credit score can all play a part in determining how much you pay for car insurance.

It might surprise you that most states allow auto insurance companies to look at your credit score when calculating your rates, too. Companies tend to believe that drivers with a higher credit score will not file as many claims.

What does this have to do with on-time payments? Paying your bills on time affects your credit score. When you skip payments, even on your auto insurance, your credit score goes down, making your rates go up.

This table shows just how much your credit score can affect your auto insurance rates with some companies:

Average Annual Rates Based on Credit Rating
CompanyGood Credit RatingFair Credit RatingPoor Credit Rating
American Family$2,691.74$3,169.53$4,467.98
Liberty Mutual$4,388.18$5,604.24$8,802.22
State Farm$2,174.26$2,853.00$4,951.20
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The difference between good credit and poor credit is about $165 a month. Not only will paying your auto insurance on time get you a discount, but it will also keep your rates low.

What happens if you don’t make on-time auto insurance payments?

In addition to lowering your credit score, not paying your auto insurance on time can lead to a lapse in coverage.

According to the Insurance Information Institute, around 12% of drivers are uninsured. These drivers have either never had an auto insurance policy or have let their existing policies lapse due to nonpayment.

Most states require that drivers carry at least a minimum amount of liability auto insurance. Not doing so can lead to fines, driver’s license suspension, and even jail time.

Not having valid auto insurance can also be very costly. If you cause an accident, normally your insurance would help cover damages and bodily injuries. Without car insurance, you will be financially responsible.

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What are other ways to save on your auto insurance?

Even if most auto insurance companies don’t offer an on-time payments discount, there are a lot of other discounts you can take advantage of.

What discounts does auto insurance offer? Most companies offer discounts based on how safe you drive, what safety features come on your car, and what types of policies you carry.

This table shows you auto insurance discounts to ask for from some of the best companies. If the amount of the discount is known, it is listed.

Auto Insurance Discounts By Company
Auto Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5N/AN/AN/A
Adaptive HeadlightsN/AN/AN/A5N/AN/AN/A
Anti-lock Brakes5555
Claim Free2610152312
Continuous CoverageN/AN/AN/A15N/A
Daytime Running Lights155N/A
Defensive Driver105105103
Distant StudentN/A107
Driver's Ed10N/A101583
Driving Device / AppN/A30402050305
Early SigningN/A8N/A1012
Electronic Stability ControlN/A5N/AN/AN/A
Emergency DeploymentN/AN/AN/A25N/AN/AN/AN/AN/AN/A
Family LegacyN/AN/AN/AN/AN/AN/A10
Family PlanN/AN/AN/A25N/AN/AN/AN/A
Farm VehicleN/AN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/A810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5N/AN/AN/A
Full PaymentN/A$5N/AN/A7.5N/A
Further EducationN/AN/AN/A1015N/AN/AN/A
Garaging / StoringN/AN/AN/AN/AN/AN/AN/A90
Good CreditN/AN/AN/AN/AN/A
Good Student1522.5102583
Green VehicleN/A5N/A10N/AN/AN/A10N/A
Lane Departure WarningN/AN/AN/AN/AN/AN/AN/A
Life InsuranceN/AN/AN/AN/AN/AN/AN/AN/A
Low Mileage30
Membership / GroupN/AN/AN/Ax107N/AN/AxN/A
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple Policies1029102010121713
Multiple Vehicles25102010208
New Customer / New PlanN/AN/AN/AN/AN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehicleN/AN/A401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/A
On-Time PaymentsN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless / Auto BillingN/A$30$233
Paperless DocumentsN/AN/A5$50N/AN/AN/A
Passive Restraint4020x40
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
Safe DriverN/AN/A15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverN/AN/AN/AN/AN/AN/AN/A
Stable ResidenceN/AN/AN/AN/AN/AN/AN/AN/A
Students & AlumniN/AN/A107N/AN/AN/AN/A
Switching ProviderN/AN/A10N/AN/AN/AN/A
Utility VehicleN/AN/AN/AN/AN/AN/AN/A
Vehicle Recovery1535255
VIN EtchingN/AN/AN/A5N/A
Young DriverN/AN/AN/AN/AN/AN/AN/A$75
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Most insurers will let you bundle your car insurance discounts for even great savings. These discounts can make a huge difference in your rates.

Other ways to save include raising your deductible, lowering the amount of coverage you carry, and removing extras like roadside assistance.

Does insurance get cheaper after 6 months? That answer isn’t so simple.

Your rates may decrease if you’ve made your payments on time or added extra discounts to your policy, but not every company guarantees a rate reduction with on-time payments. Shop around with multiple companies to see which one offers the best discount rates for your budget.

On-Time Payments Discount on Auto Insurance: The Bottom Line

Auto insurance companies reward responsible drivers with an on-time payments discount. In addition to saving up to 15%, drivers won’t have to worry about a lapse in coverage or higher rates.

However, you can only find affordable auto insurance with an on-time payments discount from five companies.

Most companies offer a variety of other auto insurance discounts, so even if you can’t find an on-time payments car insurance discount, there are many more to choose from. Shop around and compare quotes to find the lowest rates with the best discounts for you.

Even if you don’t currently qualify for an on-time payments discount, you can still find great rates. Enter your ZIP code now to compare auto insurance quotes for free from companies in your area.

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