What Is a Paperless Billing Discount?

Is your desk cluttered with paperwork? Electronic invoicing can help you get organized and earn you a paperless billing discount on your car insurance. Here's how to do it.
woman paying for auto insurance online

Many providers will give you a paperless billing discount if you choose to receive auto insurance documents electronically. They do this because it means they’ll spend less money or resources to send out bills. It also helps the environment to receive your invoices online.

In this article:

  • Why you should use electronic invoicing
  • How the paperless billing discount works
  • Insurers that offer this reward
  • Frequently asked questions

will take an in-depth look at the paperless billing discount. First, we’ll tell you how switching to electronic billing may benefit you. You’ll also learn how this reward works and how to qualify. We’ll also list the major auto insurance companies that offer it.

Why You Should Use Paperless Billing

A lot of people choose to go paperless because it’s convenient. But there are plenty of other reasons to do it. These are some of the key benefits:

  • You might get a discount. Insurance companies may lower your premium for using electronic invoicing. Your rates will go down, even if by a small percentage. This is an easy reward to qualify for that can go a long way in saving you money. Be sure to check with your agent about it.
  • Convenience. Gone are the days of desk clutter because of old bills. You also won’t have to save every bill in a file cabinet or a drawer. Bills go straight to your account with your insurer or to your email, where you can download them.
  • It helps the environment. Switching to electronic billing can make a difference for the environment. If fewer customers receive their bills in the mail, your insurer will have less of a reason to buy mass amounts of paper.

How the Paperless Billing Discount Works

Almost all insurers offer rewards to customers to help lower their premiums. In other words, they help keep your auto insurance premium affordable.

Every discount lowers your rates by a certain percentage. But not all of them will give you equal savings. Some will slash your rates more than others. How much will depend on your insurer and the state you call home. Some states, such as California, will even restrict which ones you can qualify for.

How to Qualify

This is one of the easiest discounts to qualify for. Most insurers will give you the option to receive your bills online. By choosing to do so, you’ll get lower rates. Normally, all you have to do is select electronic billing as an option on your provider’s website.

Insurers Offering a Paperless Billing Discount

Most insurers will allow you to switch over to online billing, but not all of them will reward you for it. Also, keep in mind that each provider runs its programs uniquely. Below are major auto insurance companies that reward policyholders that pay via their computers:


You can get a discount from Progressive if you go green. All you have to do to qualify is elect to receive bills online. Progressive doesn’t say exactly how much you’ll save. It’s going to vary depending on your state and personal details.

Liberty Mutual

Liberty Mutual offers savings for digital billing. They call this the paperless policy discount. Liberty Mutual doesn’t say the exact percentage of savings. Your agent might have more info on how much you can expect to save. To get it, you’ll just have to switch your policy over to online documents and billing.

Farmers Insurance

Another company that’ll give you lower rates for paper-free billing is Farmers Insurance. They call this the ePolicy Discount. This is where you choose to receive all documents that relate to your policy online. This reward is so common, Farmers doesn’t say how much you can save. But the insurer states that when you opt to receive billing electronically it waives any service charges.

American Family

AmFam lowers the rates of customers that pay online. You just have to set your policy up so that you receive bills electronically. You can also get a discount for automating your payments with them.


You could get a paperless billing discount with Nationwide. Like the other companies, online billing is something you’ll have to register for on their website. Then, you should be eligible. Be sure to speak with your agent about how much you can save Nationwide. Also, remember that state limits may apply.

NJM Insurance

NJM offers savings when you request electronic insurance documents. This discount is only available in CT, MD, OH, and PA. To find out how much you’ll save, contact NJM or an agent.


Insurance companies often reward customers that accept electronic versions of their policy documents and bills. Amica’s discount is their way of saying “thanks for saving the planet.” Their website is thin on details, so contact them directly to learn more.


Mercury has one of these discounts, too. They call it E-Signature. It helps you save when you sign your insurance documents online. To find out how much you’ll save, contact Mercury or ask an agent.

Frequently Asked Questions

Is it worth it to go with paperless billing?

Going paperless can benefit you in many ways. First, it’s more convenient. You won’t have a bunch of clutter and missing documents. Everything will be online and a tap of a finger away. You could also be in line for a discount, depending on your insurer and state. And you’d be helping the environment by using less paper and resources to transport your bills to you.

Does paperless billing get rid of monthly payment fees?

When you switch to electronic insurance invoicing, you may be able to avoid paying any service fees. This could be an easy way to save more money. That’ll depend on your insurer. You should review the policy and ask them about it if you have any questions.

How will I remember to pay my premium and keep track of receipts when I use pay online?

Any time you have an upcoming payment or receipt, your insurer will likely send you an email or alert of some kind. This is a common practice, and it will ensure you don’t forget any payments. You can also keep track of your bills by downloading the documents to your computer electronically. This’ll replace saving them in a drawer or file cabinet.


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