What Is a Responsible Payer Discount?

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If you pay your bills on time, without fail, for 12 months, you’re considered a responsible payer and you could get a discount on your car insurance.
Depending on your insurance provider, it might be called a good payer discount or responsible payer discount.
Insurance companies appreciate regular payments. They don’t have to chase you down or spend administrative hours to collect money. Plus, when they can anticipate your payment, that means predictable revenue and a more stable company.
If you think you might qualify for a responsible payer discount, you’re in luck—insurance comparison shopping app Jerry has put together everything you need to know to get started.
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How do I get the responsible payer discount?

You can qualify for this discount by avoiding cancellation notices for not paying your premiums. All you have to do is, well, pay your premium on time!
You could be eligible for this discount whether you pay monthly, quarterly, semi-annually, or annually. Just stick to the agreed-upon payment schedule and you could get a discount. If the agent doesn’t offer it to you, you may need to ask for it.
Keep in mind that if you stop paying on time, you will lose the discounted rate. You can always get it back by maintaining another 12 months of steady payments with no cancellation notices.

How much is the responsible payer discount?

The amount of the discount depends on the company. Most policyholders can expect to save about 5% annually.
You won’t get this discount until you have demonstrated that you are a responsible payer. This means that the initial fee predicted by car insurance quotes online could actually go down after a year of making regular payments.
“I was able to get a new policy with almost exactly the same coverage at less than half the price. Thanks Jerry!” —Satisfied Jerry User

Other ways to save on your premium

Savings seekers, rejoice! There are a ton of ways to reduce your car insurance premium.
Scheduling automatic payments is another easy way to save money while making your life easier.
Most companies give a discount for setting up auto payments. You can also get a discount from most companies by going paperless or bundling auto with home or renter’s insurance.
Here are some of the most common discounts from insurers:
Key Takeaway Every insurance company offers discounts, but you may have to ask which ones you qualify for to actually get them.
If you don’t shop around, you could be missing out on serious savings—like hundreds of dollars each year!
Every insurance company has a different (and secret) formula for calculating your rate. But nobody wants to call around and check every single one. As a result, most people leave money on the table for the sake of sanity.
That’s where Jerry comes in.
Jerry is your pocket insurance broker app that can help you find discounts by comparing rates from reputable companies. It’s free and it only takes 45 seconds. Oh, and Jerry handles all the paperwork and phone calls to transfer policies if you find a better rate.
The responsible payer discount is only one of many discounts that you might be eligible to receive. Don’t miss out on savings! With Jerry, finding cheap car insurance is easier than you think. Not to mention, the average user saves $879 on car insurance a year!
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