A Paid In Full Auto Discount is Available From Most Insurance Companies
She works hard for the money
So hard for it, honey
She works hard for the money
So you better treat her right
Few things incite more passion than the amount of money people pay for insurance. While most consumers agree that insurance is a necessity, any means to save on your annual premium is welcome. That’s why the paid in full discount is so popular.
Insurance companies love to have you pay your premium in advance. That means paying at the start of your policy term instead of at the end. By receiving payment in advance, they eliminate the problem of “non-payment” or “slow-payment”. The process of handling non-payment issues, the issuance of cancellation notices, and then possible reinstatement is costly to the companies. It takes insurance companies many hours to settle these problems, and they’d rather not have to deal with it.
The discounts will vary between insurance companies. However, by paying upfront, in full, insureds can normally qualify for a substantial discount (up to 10% off the total premium). On a standard auto policy, this could easily save most insureds $200.00 a year or more.
Insurance companies appreciate and reward customers who pay on time too. By paying promptly for a given period of the policy, you may see an additional discount. It will be beneficial to you as well. You will have the confidence in knowing that you will not have any gaps in your coverage, should you get into an accident.
There are other ways to save, too. Some insurance companies allow the credit to be extended to payment plans. This includes:
1. Paying by credit card: many businesses do not allow customers to use checks anymore. Too many individuals have bounced checks or written fraudulent checks for companies to trust this form of payment. By paying with a credit card, your insurance company will save time and money, and will reward you in the process.
2. Monthly Electronic Fund Transfer (EFT): this is an automatic payment from your bank account to your insurance company. You only need to provide your insurer with your bank information one time, and the rest is taken care of. You no longer need to worry about them receiving your payment by mail, the check bouncing or getting lost, or forgetting to pay and having a gap in your coverage.
3. “Two Pay”: this means paying in two separate installments. If you cannot afford to pay your entire premium up front at the beginning of the insurance period, then many companies offer you the option to pay in two or three installments. They will still reward you for paying on time and in fewer payments.
3. Paperless Billing: this is similar to the electronic payment discount. Insurance companies are trying to be more environmentally conscious, while also trying to save themselves and their customers money. Instead of getting a bill in the mail, you will be emailed a statement and then asked to pay online, by credit card over the phone, or with an electronic fund transfer.
Keep in mind that insurance companies also offer other types of discounts too. There are discounts for good drivers, good students, bundling your auto and homeowners policies together, or putting fewer miles on your car.
Speak with your independent insurance agent today about a payment discount. They will have the knowledge and experience to recommend the right policy and discounts for you. Eligibility depends on the company, and sometimes the customer’s insurance score. Contact an independent insurance agent today to see if you can save money by paying in full. Remember, you worked hard for your money, so make the insurance companies treat you right.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.