Q: If I pay my car insurance premium in full upfront, will this indicate financial stability to my carrier and result in any benefits?
Apr 27, 2021

I'm guessing financial stability is important to car insurance companies. Will it make me look like a better policyholder and benefit me somehow if I pay my premium in full upfront (which indicates I'm financially secure because I have savings)? Or does the frequency of my payments not matter?

Answer provided by
Shannon Martin
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

Thanks for your question! While having a great credit score will certainly help you get a lower car insurance rate, insurance companies look at credit a little differently then you may expect. Having a responsible credit payment history correlates to overall responsible behavior when it comes to driving. So having either a lot of credit or little available credit won’t impact you nearly as much as paying your monthly bills on time will. The same applies to your insurance payment.

Many insurance carriers have a paid-in-full discount, so you can save additional money if you can make your payment all at once. If you choose to pay in monthly installments, try to enroll in automatic payments using routing and account numbers instead of a debit or credit card. This can save you several dollars a month off the service fee.

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