Responsible payer discounts, also known as good payer discounts, are available to drivers who have made consistent on-time payments for at least 12 consecutive months. This

car insurance discount

is only offered by a few companies, but it can save you up to 15% on your

auto insurance

premiums.

What is a responsible payer discount and how do you qualify?

If you make your car insurance payments on time for at least one full year (12 consecutive months), your provider may offer you a discount on your rate.

To qualify, you’ll need to:

Stay with your provider for a full year

Avoid getting cancellation notices for nonpayment for at least 12 consecutive months

Pay your insurance monthly—although there are other discount opportunities for people who choose to pay their insurance in full

If you meet all of these criteria, you may qualify for a discounted rate from your auto insurance provider when you renew your policy—if your insurer offers a responsible payer discount.

How much can you save with a responsible payer discount?

Drivers who qualify for a responsible payer discount can save between 5% and 15% on their insurance premiums. Your exact savings will depend on your car insurance provider, though, as some insurance providers offer more savings for this type of discount than others.

Here are the top insurance providers who offer responsible payer discounts:

Insurance provider	Good payer discount (%)
Allstate	Up to 5% per year
Travelers	Up to 15% per year
Farmers	5%–10% per year

See if you qualify for a responsible payer discount.

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How to get a responsible payer discount

Qualifying for a responsible payer discount is as simple as completing your monthly payments on time for 12 months in a row. To help you stay current,

Jerry

offers automatic payment reminders. Eligible Jerry users can set up automatic monthly notifications of payment due dates to ensure they never miss a payment date.

To see if you already qualify for a responsible payer discount, you’ll need to contact your insurance provider and ask what they offer. However, because this type of discount is available based on your previous 12 months of payments, most providers who offer a good payer discount will automatically offer qualifying policyholders a discounted rate upon renewal.

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Car insurance providers who offer responsible payer discounts

Unfortunately, responsible payer discounts aren’t very common for car insurance providers. Here are the providers who offer a responsible payer discount and their average monthly car insurance rates:

Insurance provider	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

However, some other top providers offer a similar savings opportunity: the

continuous insurance discount

Continuous coverage discounts are based on how long you’ve consistently carried car insurance, not on the consistency of your payments. With a continuous coverage discount, you can make late payments and still qualify as long as you don’t experience any gaps or

lapses in coverage

Savings for a continuous coverage discount are also different, as discount rates are based on how long a driver has had continuous coverage. If you’ve maintained consistent coverage for several years, you could save between 10% and 15% from companies like

Progressive

, Liberty Mutual, and

State Farm

that offer this type of discount.

Other ways to save on your auto insurance

Auto insurance discounts aside, there are a few things you can do to lower your car insurance rates. Drivers may receive lower rates by doing one or more of the following:

Look for other car insurance discounts: If your provider doesn’t offer a responsible payer discount, look for other common discounts, like

good student

safe driver

, and

bundling

discounts.

Shop around for a more affordable rate: Even if your current provider has the type of coverage you need, there may be better—and cheaper—options out there. To ensure you’re getting the best rate on your insurance before and after any discounts are applied, try shopping for car insurance quotes from several providers with the

Jerry

app.

Clean up your credit: Statistically, you’ll get a better car insurance rate if you improve your credit. Drivers with poor credit (524-577) pay 44% more than drivers with fair credit (710-740) and 115% more than drivers with excellent credit (823+).1

Increase your car insurance deductible: A higher

car insurance deductible

corresponds to a lower rate. However, you’ll still be responsible for paying your deductible out-of-pocket after an accident, so never raise it higher than you can afford.

Take a defensive driving course: A

defensive driving class

won’t always result in a discount, although some insurance providers do offer lower rates to drivers who opt to take a driver education class. Even if your provider doesn’t offer a direct discount, however, you can still save over time by learning safe driving techniques to help you avoid accidents.

Drive a safe vehicle: A car with great safety features is less likely to get into a severe accident, translating to lower insurance rates. Even basic safety features like anti-lock brakes, seatbelts, and lots of airbags can result in lower average rates. You can also lower your

comprehensive car insurance

rates by installing anti-theft devices.

Find great savings with Jerry today!

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FAQ

Does Progressive offer a responsible payer discount?

While

Progressive

doesn’t offer a responsible payer discount, you can get a

continuous insurance discount

if you don’t have a lapse in coverage. The longer you’ve carried insurance without any lapses or gaps in coverage, the more you could save—even if your previous insurance wasn’t with Progressive.

Can you get a responsible payer discount for your car insurance policy in California?

California

state laws prohibit insurance companies from using certain factors when determining car insurance premiums, meaning you won’t be offered a responsible payer discount (or any other discount based on when and how you make your payments).

Does GEICO have a responsible payer discount?

GEICO

does not currently offer a responsible payer discount. However, you may be able to secure other types of insurance discounts from GEICO, such as a discount for purchasing

full coverage

insurance or for using electronic funds transfer (EFT) to pay your car insurance bill.

Meet our experts

Liz Jenson

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.

Amy Bobinger

Licensed Insurance Agent — Expert Insurance Editor

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.

SOURCES

https://consumerfed.org/wp-content/uploads/2023/07/Official-CFA-Credit-Score_2023-FINAL-REPORT.pdf