How to Pay Your Car Insurance

There are many ways to pay for auto insurance. You can make your payments annually, every six months, quarterly, monthly, or even by the mile. You can choose from several methods of payment, including via bill pay at the bank, credit card, checking account or electronic funds transfers. There are also several options for how to pay, such as over the phone, by mail or via a mobile app.

Let’s get into the nitty gritty of insurance payments and how to pay for car insurance.

How often do you pay for car insurance?

Before anything else, you’ll need to decide when — and how often — you’ll be making auto insurance payments. 

With most providers, you can choose to make your car insurance premiums 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 providers will allow you to make quarterly payments for your policy, meaning a payment every three months. You may save more on your premium by paying quarterly rather than monthly, although the best discounts are usually 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 their 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 can usually get a discount worth between 5–10% 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.

Payment methods for car insurance

Next, you’ll need to choose how to pay for your car insurance. Here are some of the most common payment methods:

• Electronic funds transfer (EFT): This means linking your bank account to your auto insurance company. You can use EFT to pay auto insurance with a checking account, savings account, etc. Once the EFT has been set up, your car insurance company will automatically withdraw their payment from the selected account on or before the due date.
• Pay auto insurance with a credit card or debit card: Most insurers allow automatic payments with a credit or debit card as long as you add the billing information to your account and set up recurring transactions. 
• Bill pay through your bank account: Many 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 payments are handled by the bank and 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. For example, the Progressive app allows customers to pay with credit cards, debit cards, checking accounts, Apple Pay, Google Pay or PayPal. This is a quick, convenient option for many modern drivers. 
• 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 making the call.
• Pay car insurance by mail with check or cash: If you prefer to make insurance payments the old-fashioned way, you can send a money order or check to your insurance provider by mail. In some cases, you’re also 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.

Having all these options may feel overwhelming, but they give the freedom to customize your insurance payments so that you can make them in the easiest, most convenient way.

How much will your car insurance payments cost?

On average, drivers pay approximately $175 a month for minimum liability car insurance and around $338 per month for full coverage.

However, the cost of car insurance 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, location and 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 specific details of your policy and coverage needs, Jerry gathered data on some of the top insurance providers in the U.S. to give you an idea of their average rates. Here’s what we found:

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 in order to get the best price.

Paying car insurance in full vs. monthly

Drivers in the U.S. who pay their entire premium in full at the start of their policy can usually get a discount from the insurer. While discounts vary from one company to the next, you can usually get an average discount of around 9% with some companies offering as much as a 20% discount.

With any insurance policy payment plan, it’s important to make your payments in full and on time.

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 car insurance provider about payment grace periods. You may be able to delay payment for a couple of days if you’re waiting for your next paycheck, for example.
• 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 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.

MEET OUR EXPERTS

Megan Lee

Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.

Everett Cook

Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.