On-Time Payments Discount: How Much Can You Save?
Making your auto insurance payments on time each month helps you avoid a lapse in coverage and may also earn you an on-time payments discount. You can buy on-time payments discount auto insurance from five national providers. Drivers save an average of 10% on their annual premiums by qualifying for on-time payments discount auto insurance rates.
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UPDATED: Aug 24, 2021
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- Five national auto insurance companies offer on-time payment discounts to drivers
- Customers save an average of 10% on their annual premiums by earning this deal
- Paying your premiums on time also helps you avoid a policy lapse
If you consistently pay your monthly auto insurance premiums on time, you may qualify for an on-time payments discount.
Drivers save an average of 10% on their auto insurance rates by earning this deal.
Scroll down to discover which companies offer on-time payments auto insurance discounts, how you can qualify, and learn how discounts help lead to lower auto insurance rates.
After you read about affordable on-time payments discount auto insurance quotes, remember to enter your ZIP code into our free tool above to compare accurate rates from the best providers near you.
Which auto insurance companies offer an on-time payments discount to drivers?
Of the national auto insurance providers, five offer an on-time payment discount to drivers.
Customers save an average of 8% on their annual premiums by earning this rate reduction.
Verify if you already use an on-time payments discount auto insurance company by looking at the list below:
- Allstate Auto Insurance Company – 5%
- Farmers Auto Insurance Company
- SafeAuto Insurance Company
- The Hartford Auto Insurance Company
- Travelers Auto Insurance Company – 15%
It’s possible local agencies near you also provide insurance payment discounts to clients, so shop around and ask about discounts from multiple companies.
Remember your age, driving record, and the minimum auto insurance requirements where you live also influence your annual insurance costs.
Plus, not every company is active in every part of the country.
So even though Travelers provides the most substantial on-time payments discount auto insurance rates, the company might not offer you competitive prices if it’s not active where you live.
To secure your best prices, compare quotes online from different companies and ask about additional auto insurance discounts.
Enter your ZIP code below to compare auto insurance rates.
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What is an on-time payments discount?
So what is a pay-on-time discount? It reduces your auto insurance rates because you’ve proved to your insurer that you are fiscally responsible.
How do pay-on-time discounts work? Typically, you need to pay your auto insurance premium before the due date for a set period.
As long as there are no late payments, the rate reduction is usually automatically applied to your policy at the time of your policy renewal. However, it’s a good idea to ask an agent or representative directly and verify that you’re actually receiving the savings.
The benefits of on-time payment discounts go beyond an auto insurance rate reduction. You’re also improving your credit score.
According to the National Association of Insurance Commissioners (NAIC), insurers sometimes use a credit-based insurance score during the underwriting process. In states where this is legal, your good credit leads to lower premiums overall, even before discounts are applied.
Still, other auto insurance discounts that can help you reduce your rates and rack up savings include vehicle equipment, customer loyalty, driver’s affiliation, and driver’s education discounts.
So consider asking about the following savings opportunities:
- Claim-free discount
- Good credit discount
- Good driver discount
- Good student discount
- Low-mileage discount
- Military discount
- Multi-policy discount
- Multi-vehicle discount
- Pay-in-full discount
Finally, know that this discount only reduces auto insurance policies and is not affiliated with electricity plans with pay-on-time deals or early payment discounts on student loans.
You’ll need to take time to research if pay-on-time discounts are the best way for you to save on your energy bill.
Also, there usually are no early payment discounts on student loans.
On-Time Payments Discount: The Bottom Line
If you always make your auto insurance payments on time, this is one of the auto insurance discounts to ask for to help reduce your rates.
Responsibly paying your premiums also helps you avoid a lapse in your policy. Policy lapses cause insurance rates to increase.
However, it’s also worth shopping around and comparing rates from multiple providers to verify that you’re still paying competitive rates.
Now that you know how to buy on-time payments discount auto insurance, start comparing quotes from the top companies in your region by entering your ZIP code into our free rate tool below.