The Paid-In-Full Discount on Car Insurance

Most insurers let you choose how you pay for insurance. You could get a discount if you pay in full. Find out more about it here.
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Car insurance companies provide a couple ways to pay your premium. You have the option of making monthly payments or paying in full. Insurers prefer the latter and reward those who do with the paid-in-full discount.

When you pay in full for your car insurance policy, insurers won’t need to worry about you missing a payment. They’ll have your money upfront. This makes you far less of a risk to insurers. Just know that to pay in full means you’ll be paying in advance right away. You won’t get to keep any of the money.

This article will explain how paying in full for your auto insurance might be a good way to save more on your auto insurance. We’ll tell you how the paid-in-full discount works and what you need to do to qualify. We’ll also lay out the pros and cons of paying for your insurance in full. Finally, you’ll learn about which companies offer this discount.

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How the Paid-In-Full Discount Works

Insurance can be pretty expensive. Especially if you buy coverage that goes beyond your state’s bare minimum requirements. But in most cases, you’ll need at least some of it to drive. Luckily for you, there are plenty of discounts that you can get to lower your car insurance rates. Discounts slice a percentage off of your rates. And you can often qualify for many discounts to save lots of money.

Paid-in-full discounts are a good way to save on car insurance. If you have the money on hand, paying upfront can get you a discount. All you’ll need to do is pay in advance for your coverage instead of monthly. The amount of savings that you can get from this discount will depend on your insurer and state. This discount isn’t available in California.

Paying in full usually means buying six months’ worth of car insurance. You may also see insurers call this a semi-annual payment. Other insurers might allow you to pay quarterly. Most insurers should give you the option to select how you pay when you’re setting up your policy.

Paying in Full vs. Paying Monthly

There are many reasons why you might want to pay in full for your car insurance (Besides the paid-in-full discount!). But there are also some cons to doing so. Here’s are the pros and cons of paying in full for your car insurance:


  • Less stress. You won’t need to worry about monthly payments if you pay in full. Instead, you’ll be able to lock up your coverage for months. This makes it harder to miss payments as well.
  • Discount. Many insurers offer a discount if you pay in full for your coverage. This discount can help you save a little extra on your rates each time you need to pay.


  • You’ll need to pay all of it at one time. One of the negatives of paying in full is that you’ll have to pay the entire cost of your premium all at once. This can amount to hundreds of dollars in a one-time payment. This might be hard to handle if you can’t afford it right away.

Should You Pay in Full or Monthly?

The bottom line is that you should only go with the payment plan that you feel comfortable with. it’s probably a good idea if you can afford to pay in full for your insurance. You’ll have less worry and will receive a discount from your insurance company.

But paying monthly can also be a smart choice. You won’t have to foot the whole bill right away. You can just pay the smaller monthly increments. This helps you have more money on hand each month. Insurance companies may also offer a discount for electronic or automatic billing each month. These discounts are usually only for customers that pay monthly.

Which Companies Have a Paid-In-Full Discount?

Many of the top insurance companies offer a discount if you pay in full. But they may offer different savings. They might also run their discount programs in different ways. Here’s a list of major insurers that offer this discount as well as a look at how their discount programs work:


With Progressive, you can get a discount for paying in full. They don’t disclose the exact savings that you’ll receive. This number will likely depend on facts about you, as well as the state that you live in.

Liberty Mutual

You can get a paid-in-full discount from Liberty Mutual. They offer this discount to customers who pay for their insurance in one or two payments. They don’t list a percentage of savings on their website. This indicates that it’ll depend on you and your state. Be sure to speak with your agent about how much you can expect to save by paying in full.


Travelers Insurance also offers a discount for paying for your car insurance premium in full. When you’re setting up your policy, make sure to ask your agent how to choose a payment plan that’ll get you a discount. You should also ask them about how much you can potentially save by paying in full.


Allstate provides customers with a discount if they pay in full for their auto insurance. They call this the FullPay® discount. When you’re buying your policy, all you’ll need to do is make sure you pay in full. You should then be able to receive a discount from them.

Farmers Insurance

Another company that offers a paid-in-full discount is Farmers. They’ll give you a discount if you opt to pay the whole premium in advance. They don’t tell customers upfront about how much they can save. Your agent will likely have more info about how much the discount will save you. You should consider asking them about this when you’re setting up your policy with Farmers Insurance.

Erie Insurance

Erie offers a payment perk, as they call it, when you pay for you insurance policy in one lump sum. This is its version of the paid-in-full discount. So, if you prefer paying all at once, this discount is for you. Contact Erie for details on how much you can save with this discount.


Dairyland offers a paid-in-full discount. The insurer calls it the payment frequency discount. It’s basically the same as a paid-in-full discount, but you can select options besides month-to-month or a full payment.


Companies prefer that you pay for an entire insurance policy term up front. When you do, Mercury will give you a paid-in-full discount. If you plan on making a one-time payment each year for your car insurance, be sure to take advantage of this discount.

NJM Insurance

New Jersey Manufacturers, or NJM, love it when you pay for you premium with a lump sum payment. The company will extend a paid-in-full discount when you do. Savings for this kind of discount are usually small, but even small ones add up. Contact NJM for more details.


When you pay your auto insurance balance up front, Amica will give you a paid-in-full discount. There isn’t very much information about it on the insurer’s website. Savings often vary from state-to-state. To learn more about these savings, contact Amica or ask an agent.


Paying your auto insurance by writing one check or making a single online payment can get you a lower premium. Kemper offers a-paid-in-full discount when you pay this way. Contact Kemper to find out how much you can save when you skip the monthly insurance payments.

The Hanover

The Hanover includes a paid-in-full discount with its account credit discounts. There are few details regarding this discount on the company’s website. You’ll need to contact The Hanover to learn more.


Shelter insurance will take 10% off your auto insurance rates if you pay in full for each policy term. This is the pay-in-full discount. You have the option of paying once a year or every six month term to qualify. Contact Shelter for more details.

Keep in mind that these aren’t the only companies who offer this discount. They’re just some of the most common insurers that have it available to you. Other insurers might also offer this discount to you. This includes more local carriers as well. That’s one reason why you should do a car insurance comparison from time to time. Comparing quotes can help you find better discounts and better rates.

Frequently Asked Questions

Q: Is car insurance cheaper if you pay in full?

A:  Yes. Your car insurance can be cheaper if you pay in full for it. Many insurers will give you a paid-in-full discount on your insurance if you pay at once in a lump sum. When you’re going to buy insurance, try asking your agent about a pay-in-full discount. Just remember that paying in full means you’ll be on the hook for your whole premium all at once. Only do it if you can afford to.

Q: When you pay in full, how far in advance is it?

A: In general, paying in full means buying coverage for six months. Insurers will also likely offer quarterly and monthly payment plans. But six months is the usual period of time that counts for paying in full. You may also see 12-month insurance plans. It might be a smart idea to consult with your insurer before you make any decisions on how you pay.


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