Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

The lowdown...

  • The vast majority of drivers choose to pay their car insurance premiums in monthly installments to ease their cash flow burden
  • You can always pay for an entire policy term of car insurance when you first take out a policy
  • A good reason to pay for your entire policy period right away is that you can be sure you will never skip a payment and will not have to worry about your coverage stopping
  • When your car insurance policy is up for renewal after six or 12 months, you will need to pay again for the next term
  • If you leave your insurance company early, they are required to give back to you any amount that was not used for your premium

No car insurance company is going to argue with you wanting to pay the full amount of your car insurance premium on the start date of your policy. This can actually be better for each party and might net you a small discount on your premium.

The vast majority of auto insurance policies are set to auto renew unless something serious happens with your driving record during the policy term. When your insurance policy comes up for renewal, you will need to pay the premium again for the next term.

Compare car insurance premiums right now using our free rate tool.

Choosing How to Pay Your Auto Insurance Premium

adobestock_76267159-1600x1600

When you sign up for an auto insurance policy, you will be able to set up a payment plan. Most people select a monthly payment plan because they do not want to pay the entire amount right away. This is an option offered by almost every single car insurance company.

Another way to tackle your premium payment is to get it out of the way before your policy is even effective.

You can pay for a six-month block up front. Some auto insurance companies even have a full year term, which means that you could pay ahead for an entire year of auto insurance coverage.

One of the major reasons why people choose to pay their full premium right away is because they are offered a small discount from the car insurance provider.

While the discount might be small, every bit that you can save on your auto insurance premium is certainly worthwhile.

Free Insurance Providers Comparison

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

What if you miss a payment?

Missing a car insurance premium is a serious predicament. It means that you could potentially lose your coverage.

In fact, if you have an accident after a certain grace period has passed without payment of your premium, you just might be out of luck for having your claim covered.

If you are late on paying your premium payment multiple times during a single policy term, the auto insurance company might have pause before renewing your policy again.

This could leave you without coverage, which is also referred to as a gap. If other auto insurance companies see that you have a gap in car insurance when you are searching for a new policy, this could mean you are quoted at a higher rate.

Getting Your Premium As Low As Possible

adobestock_65265779-1600x1600

In addition to getting a small discount for paying your premium all at once, there are many other ways that insurance companies might lower your rate.

These savings could be because of the following:

  • Your clean driving record
  • Insuring multiple items with the same company
  • Insuring multiple vehicles with the same company

This could happen if you have a clean driving record. Your driving record is critical when it comes to assessing your insurance score and the rate you will pay.

Even if you do not have a perfect record, you can still get a substantial discount on your car insurance rate by using the same insurance provider for all of your insurance needs.

Find out how much of a discount you could get by using the same provider for your auto, life and home owner’s insurance. It can make a huge difference in your rate in some cases.

Auto insurance companies also provide incentives for families to insure multiple cars under the same policy.

This means that if you have a teen driver, you should have him or her added to your plan in most cases to be able to get credit from your insurance company for insuring multiple cars.

The best way to know that you have exhausted all ways to pay as little as possible for insurance is to get free quotes online from more than one company. If you are only quoted by one company you really do not have an effective point of comparison for rates.

Wrap Up on Paying Your Car Insurance Premium Early

adobestock_55566404-1600x1600

In terms of being able to pay your car insurance premium early, this really means that you pay the full amount of your premium at the very beginning of your policy. This is always an option for any insured driver, and it is actually preferred by the car insurance provider.

The reason for this is that they like to know that they will not have an issue down the line with being able to get their payment. For you, paying your entire auto insurance right at the beginning of the policy term means that you will not have to bother with monthly payments.

It also means that you might get a slight reduction in your premium because the car insurance company does not have to worry about processing payment every month.

Compare car insurance quotes today to see if you could be saving money on your premiums.