What Is the Early Signing 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 documents early to get discount

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

Staying on the lookout for benefits like this is a great way to lower your premium. Your rates can increase for many reasons at any time. So, watching out for customer rewards like this is one of the best ways to keep your prices low. Most of the time, you can get discounts from your auto insurer for things like:

Keep in mind that each company treats every discount uniquely. For example, some providers 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 this discount. This includes a breakdown of how it works. We’ll also make sure that you know the difference between this and similar discounts. Finally, you’ll learn which companies offer it. 

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How the Early Signing Discount Works

Car insurance discounts exist as a way for your provider to reward you for good driving 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.

Carriers offer these incentives to entice you to stay with them and reward your customer loyalty. It also helps ensure that you renew your policy on time and avoid a costly lapse in insurance. A lapse in insurance happens when you go through a period without any coverage. If they see a lapse, insurers may see you as high-risk and increase your rates.

Depending on your company, you can qualify by renewing your policy before it expires. For instance, Allstate will give you a break on your rates if you sign your new policy documents seven or more days before your period start date.

Keep in mind that not every company offers savings for signing early. But yours may have one, even if they don’t list it on their website. It’s not uncommon for insurers to have discounts but not list them. Get a quote or contact your agent to see if your provider offers customers this kind of bonus.

Early Signing vs. Early Quote Discount

Many major car insurance companies offer something called the early quote, or early bird, discount. Because of the name similarity, they may seem related. But it’s important to remember that the two are quite 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 is that early signing is for existing customers and early quote 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.

Which Companies Offer the Early Signing Discount

Not many insurers come right out and say that they lower your rates when you renew before your policy period expires. And many more don’t offer any savings 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 is the only auto insurance company that offers a specific early signing discount. They’ll give you a discount if you sign your policy seven days in advance. Allstate doesn’t mention an exact amount you can save. But the discount is 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 agent to find out more about how much you can save.  

Frequently Asked Questions

Q: What is an early signing discount?

A: Some companies, such as Allstate, reward customers that sign their new policy before their current one expires. In terms of dollar savings, it’s not the biggest benefit. Even so, it’s easy to qualify. All you need to do is keep track of your policy and renew before your end date.

Q: What is a lapse in insurance?

A: A lapse in insurance happens when you go a while without having any coverage. A lapse in coverage will often result in higher rates. It may even force you into high-risk driver pools. This is because you’ll appear to be an unreliable customer. Insurers prefer it when you bring continuous coverage to the table.

Q: What is an early bird discount?

A: Several insurers 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 carrier ends.


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