You can make your car insurance payments annually, quarterly, monthly, or by the mile. You can also choose from several methods of payment, including bank bill pay, credit card payments, and electronic funds transfers. There are also several options for locations of payment, such as over the phone or via mobile app.
Car insurance payment options
Before anything else, you’ll need to decide how often you’ll be making your auto insurance payments. With most providers, you can choose to make your car insurance payments in one of four ways:
- Monthly payments: Making car insurance payments each month is one of the most common options. However, there are often fees associated with each payment that raise the overall cost of your insurance.
- Quarterly payments: Some auto insurance providers will allow you to make quarterly payments for your policy, meaning you’ll make a payment every three months. You may save more on your premium by paying quarterly rather than monthly, although you’ll usually get the best discounts for paying in full.
- Paying in full: For some drivers, it’s easier to pay for the entire car insurance policy at the beginning of your policy term—either every six months or once a year at policy renewal. Drivers who can afford to make upfront payments avoid lots of extra fees associated with paying in installments and save an average of 10% on their policy.
- Pay-per-mile: Some insurance providers offer policies based on how much you drive. Pay-per-mile insurance may be a great option if you don’t drive very often, but it can end up being very expensive if you drive more than expected.
How much can you save by paying your car insurance in full?
Drivers who pay their entire car insurance premium in full at the start of their policy pay around $1,626 a year on average, while drivers who pay monthly spend about $1,726 a year (or around $144 a month) on car insurance.
To better understand how insurers reward drivers who pay in full, Jerry’s experts analyzed thousands of auto insurance policies purchased by Jerry users. They found that some insurance companies offer significantly more savings if you pay for a 6-month or year-long policy upfront:
| Carrier | Monthly installments | Paid in full | Savings % |
|---|---|---|---|
| Allstate | $1604/yr ($134/mo) | $1499/yr | 6.5% |
| Bristol West | $1919/yr ($160/mo) | $1816/yr | 5.3% |
| Clearcover | $1431/yr ($119/mo) | $1338/yr | 6.5% |
| Metlife | $1420/yr ($118/mo) | $963/yr | 32.2% |
| National General | $2384/yr ($199/mo) | $1663/yr | 30.2% |
| Plymouth Rock | $2398/yr ($200/mo) | $2305/yr | 3.9% |
| Progressive | $1456/yr ($121/mo) | $1415/yr | 2.8% |
| Safeco | $1725/yr ($144/mo) | $1626/yr | 5.7% |
| State Auto | $1356/yr ($1135/mo) | $1322/yr | 2.5% |
With any insurance policy payment plan, it’s extremely important to make your payments in full and on time. That’s why the Jerry app offers payment reminders to help you stay current on your car insurance premiums.
There are several payment methods you can use for your car insurance
Next, you’ll need to choose a payment method for your car insurance. Here are some of the most common payment methods used to pay for a car insurance policy:
- Electronic funds transfer (EFT): Using EFT means linking your bank account to your auto insurance company. Some providers will also let you choose the type of account you want to use for this service: checking account, savings account, credit card, or debit card. Once your EFT has been set up, your car insurance company will automatically withdraw your car insurance payment from the selected account on or before the due date.
- Bill pay through your bank account: Many insurance providers allow you to use your bank’s bill pay feature to make your car insurance payments. Bill pay is a free service that allows you to make automatic payments directly from your checking or savings account without using a credit or debit card. While this option often disqualifies you from automatic payment discounts, it also gives you more control over who can access your money because your payments are handled by your bank, not your insurance provider.
- Mobile app or online payments: If your insurance provider has a mobile app, a website, or both, you’ll typically be able to make payments there, too. This is a quick, convenient option for many modern drivers. Check out your provider’s website for more information about this payment option.
- Phone payments: You can typically make payments over the phone via e-check or a credit card. If this is your first payment with your current insurance provider, have your policy information on hand when you make the call.
- Paying by check or cash: If you’d prefer to make your insurance payments the old-fashioned way, you can send a money order or check to your insurance provider by mail. In some cases, you’ll also be able to pay with cash by visiting your insurance provider’s office in person. Paying with cash is less common, though, so check with your insurance agency to see if they accept this payment method first.
All these choices may feel overwhelming, but they give you the freedom to customize your insurance payments so you can make them in the easiest, most convenient way.
How much will your car insurance payments cost?
On average, drivers pay approximately $77 a year for minimum liability car insurance and around $165 a year for full coverage.
However, the cost of car insurance payments varies a lot from person to person and from provider to provider. Factors like your chosen payment period, driving record, vehicle make/model, credit score, and your chosen provider can all have a big impact on your car insurance rates.
While it’s impossible to estimate your exact insurance payment amount without knowing the details of your policy and coverage needs, Jerry gathered data on some of the top insurance providers in the US to give you an idea of their average rates. Here’s what we found:
| Insurance company | Minimum liability | Full coverage |
|---|---|---|
| AAA | $105 | $215 |
| Allstate | $85 | $198 |
| Bristol West | $158 | $361 |
| Clearcover | $66 | $130 |
| Founders | $51 | $174 |
| Gainsco | $98 | $222 |
| MAPFRE | $66 | $205 |
| National General | $93 | $211 |
| Nationwide | $61 | $155 |
| Progressive | $79 | $178 |
| Safe Auto | $122 | $200 |
| State Auto | $58 | $162 |
| Travelers | $59 | $141 |
The only way to know for sure how much your payments will be is to check with your provider. If you haven’t settled on a provider yet, try shopping around. Experts recommend getting personalized quotes from at least three different providers before settling on a policy. You can do this on your own or you can opt to use an expert car insurance broker like Jerry to simplify the process.
What happens if you don’t pay your car insurance on time?
If you’ve already missed a car insurance payment, you should contact your auto insurance provider as soon as possible to get your policy back up to date.
Most insurance providers offer a grace period of three to 30 days, during which time you can reinstate your policy without experiencing a lapse in coverage. After the grace period has passed, however, your provider will usually begin the process of canceling your policy by sending you a note in the mail with your policy termination date.
If you receive a policy termination notice in the mail, you’ll need to contact your insurer and attempt to reinstate your policy before the termination date or find a new policy with a new provider before that date to avoid driving without insurance.
What if you can’t afford your car insurance payment?
If you’re having trouble affording your car insurance, you might try one or more of the following:
- Ask your provider about payment grace periods or deferrals. You may be able to delay payment for a couple of days if you’re waiting for your next paycheck.
- Check for any car insurance discounts that you might qualify for. Many insurers offer discounts, even if they aren’t advertised.
- Raise your car insurance deductible to lower your monthly premiums. A lower deductible results in lower monthly payments, as long as you can afford to pay it out-of-pocket in the event of an accident.
- Shop around for a new, cheaper policy. You can do this on your own or use Jerry to simplify the process.
- Try bundling your insurance. Bundling your car insurance with your homeowners or renters insurance can qualify you for discounts on your rates.
- Clean up your driving record. Drivers without any infractions on their record pay less on average for their insurance, so a clean driving record can pay off on your insurance.
FAQ
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Should you pay for your car insurance with a credit card?
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What happens if you miss a GEICO car insurance payment?
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Is it better to pay car insurance monthly or premium?
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What’s the cheapest car insurance company?
Source
- https://www.geico.com/information/faq/#i_am_enrolled_in_automatic_payments_can_i_make_a_late_payment ↩︎
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
