Do insurance carriers lower your premium if you pay in full?

My car insurance is set to renew and I'd like to try and save money. Right now my monthly payments are $150. Could I reduce my premium if I pay in full?

Answer
Most car insurance companies offer a discount when you opt to pay your premium in full.
When you select a monthly payment plan with insurance companies, this often includes installment fees and interest. On average, you can save at least $100 on your insurance by paying in full.
Insurance carriers offer a discount when paying in full because you are considered lower risk. This is because there is no chance your policy could be canceled due to non-payment, making you a more favorable customer to insure. As a reward, insurance carriers offer you a lower premium.
As rates vary between carriers, it never hurts to comparison shop before your renewal, and the Jerry app is a great place to start. Sign up in minutes to compare rates from dozens of insurers to save yourself the most money possible.
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Emily Maracle
Answered on Sep 17, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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