Great 8 Tip #2 - Pay-in-Full

Jeff Ryan - CLU, ChFC, AIA, CIC, CPCU

July 4, 2024

In recent years, companies have implemented discounts for paying insurance policies in full (or annually) for some types of insurance. Many companies offer this option, especially for their auto policies.

A Paid-In-Full discount allows customers to avoid installment fees and a reduction in the annual premium amount due.

Not all policy types have this discount (homeowners policies typically do not), so it is a good idea to ask your agent if the option is available.

Here’s a Real-World Example:

Auto Policy Paid Monthly or Quarterly: $2,135/year
Auto Policy with Paid in Full Discount: $1,908/year
Annual Savings: $227 (over 10%)
That amount may not include additional billing fees associated with alternative payment plans.

Other payment discounts might be available and worth your consideration:

Electronic Funds Payment (EFT/ACH) - Many companies will waive or reduce billing fees if you set up your account with an automatic payment plan.
This payment plan also helps prevent accidental cancellations or late payment surcharges.
Reduced Billing Period—Other than Paid-In-Full, some companies will provide a lesser discount if you pay over a shorter time (say three months). This is an alternative to their Paid-In-Full discount spread over a slightly longer time frame.

Discounts vary depending on the amount of premium paid, type of policy, and company.

If you have the funds available to pay in full, this might be a great SaveSmart option, with the side benefit of reducing the mail you receive from insurance companies!

About the Author: Jeff Ryan has been a licensed insurance agent since 1978, later becoming a full-time insurance professional in 1983. Since then, he has been the principal of The Ryan Agencies with offices in Hornell, Jasper, and Wellsville. The agencies serve approximately 15,000 clients in New York and Pennsylvania. Jeff holds numerous credentials including the Chartered Property & Casualty Underwriter (CPCU), Certified Insurance Counselor (CIC), Accredited Advisor in Insurance (AAI), Chartered Life Underwriter (CLU), and Chartered Financial Consultant (ChFC) designations. He holds a Master's Degree from the American College. Jeff enjoys writing about all things insurance and welcomes your questions and feedback.

< Older Post

Newer Post >

Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.