What Is the Early Signing Car Insurance Discount?

Signing your car insurance policy early may be able to get you a discount. Read more about the early signing discount here.
Man signing car insurance document

Did you know that you can save money on your car insurance by signing your policy before it ends? Auto insurance companies typically refer to this as the early signing discount. This is a way for insurers to reward you for showing initiative and staying with them as a customer.

Staying on the lookout for discounts is a great way to cut down the amount you pay for car insurance. Your rates can increase for many reasons at any time. So, being aware of discounts is one of your best bets at keeping your prices low. Most of the time, you can get discounts from your auto insurer for several things, like:

Keep in mind that each company treats every discount uniquely. For example, some companies may offer you a nice discount for signing early, while others may not. And some may want you to sign longer in advance to be able to claim the discount than others. It’ll just depend on which insurer you decide to do business with.

In this article, we’ll help you understand how to get the early signing car insurance discount. This includes a breakdown of how it works. We’ll also tell you about the differences between the early signing and early quote discounts. Finally, you’ll learn where you can get the early signing discount. 

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How the Early Signing Discount Works

Car insurance discounts exist as a way for your insurance provider to reward you for good habits and actions. They also offer discounts as benefits to retain their customers. These good habits could be things like safe driving, having extra safety features on your car, or being a loyal customer.

Insurers offer the early signing discount to create an incentive for you to stay with the same company and show your customer loyalty. It also helps ensure that you renew your policy on time and avoid a costly lapse in insurance. A lapse happens when you go a period without any car insurance. If you have one, insurance companies may see you as high-risk and increase your rates.

Depending on your company, you can qualify for the early signing discount by renewing your insurance policy before it expires. For instance, Allstate will give you a discount if you sign your policy seven or more days before your new policy starts.

Keep in mind that not every car insurance company has an early signing discount. But your insurer may have one, even if they don’t list it on their website. It’s not uncommon for companies to have discounts but not call them anything. Get a car insurance quote or contact your insurance agent to see if your insurer offers an early signing discount.

Early Signing Discount vs. Early Quote Discount

Many major car insurance companies offer something called the early quote, or early bird, discount. Because of the name, it may seem like this is the same as the early signing discount. But it’s important to remember that the two are different.

The early signing discount refers to you signing your policy before it ends. The early quote discount is for when you get a quote from a competitor before your policy ends. A helpful way to remember it is that the early signing discount is for existing customers and the early quote discount is for new customers.

You can get the early bird discount if you receive a quote from a company and switch seven days before your policy with your current company ends. As is the case with most discounts, this is a way for your new company to reward you for switching to them early.

Who Offers the Early Signing Discount

Not a lot of insurers come right out and say that they offer a specific early signing discount. And many just don’t offer it at all. But as mentioned, this doesn’t mean that they don’t have it. Since it’s an easy discount to qualify for, it’s worth double-checking to see if you can get it.

Allstate and Liberty Mutual are the only auto insurance companies that offer an early signing discount. Liberty Mutual calls theirs the early shopper discount. Both give you a discount if you sign your policy before it expires. Allstate doesn’t specify how much you can save. But it’s likely to cut down your rates by a good percentage. This is especially true if it’s combined with other discounts. Be sure to contact your Allstate insurance agent to find out more.

Frequently Asked Questions

Q: What is an early signing discount?

A: Some auto insurance companies, such as Allstate, give you an early signing discount if you sign your policy several days before the new one goes into effect. The discount will then take a percentage off your auto rates.

Q: What is a lapse in insurance?

A: A lapse in insurance happens when you go a while without having any car insurance. Having a lapse in auto coverage can cause your rates to go up. It may even cause you to become a high-risk driver in the eyes of insurers. This is because you’ll appear to be an unreliable customer.

Q: What is an early bird discount?

A: Several car insurance companies offer an early bird discount to new customers. You can usually qualify by getting a quote from another company seven days before your policy with your current company ends.


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