Looking for an additional way to make auto insurance cheaper? One way to lower an annual auto insurance premium is to pay all of it, or most of it, up-front.
Many of the large multi-state insurers provide substantial discounts of up to 10% or more for customers who pay their auto insurance bills annually or semi-annually. In addition to shopping around for the companies willing to offer the lowest rates, thrifty drivers can shave even more off of their costs by agreeing to ‘paid in full’ agreements where they fork over larger payments at the beginning of a premium period. In addition to 'slimming down' an auto policy by stripping away unnecessary riders, switching to up-front payments can make a lot of sense for any premium payer who typically has a few hundred dollars tucked away to pay the larger bills that will come due once or twice a year.
What Up-Front Auto Insurance Payments Do
One reason that insurers are willing to offer up-front auto insurance discounts is that having customers make these payments reduces paperwork for the insurance office. Instead of having to collect 6 or 12 monthly checks, the company can simply collect one lump sum. That makes accounting and record keeping easier, cuts down on the labor around mail rooms and generally makes the policy handling more efficient.
Up-front payment can also do a lot for enrolled members as well. By paying insurance costs up-front, it can be easier to fit them into a household budget where this larger payment is anticipated, rather than having smaller amounts ‘trickle’ out of a bank account each month. Drivers also tend to look more closely at what they pay for auto insurance when they see the larger numbers associated with annual or semi-annual premium payments. In some cases, making bigger payments can show drivers more about how additional amounts for comprehensive and collision insurance, or other extras, add up over the months, and how cutting some of these items responsibly can save a policy holder a lot of money.
Keep in Contact with Your Insurer
A lot of the discounts and special offers that drivers get from their auto insurance companies depend on close contact and communication with company representatives. For those who have bought insurance through a local broker, that means keeping in touch with the individuals who are forwarding the driver’s information for underwriting.
For those who have made the deal directly with a national or multi-state insurance company, it’s a good idea to have a working username and password for that company’s customer service website, and to occasionally call and speak with company representatives about the newest policies and everything going on at the company, including current discounts for drivers. All of this can be a great way to keep tabs on auto insurance premium payments and keep costs lower in order to make sure that staying on the road doesn't become a huge financial burden for an individual driver or a family.
All About Insurance can shop your Fort Worth Auto Insurance rate with over 50 companies. This allows us to quickly and easily research the best insurance deals. You will not have to wait long for a quote, we can compare prices instantly. Give All About Insurance a call today at 817-589-0006 and let us get started finding you the best auto insurance at the best price.