How Do I Get an Autopay Discount for Car Insurance?

Last Updated on December 31, 2019

If you’re looking to save money on car insurance, once of the best ways to go about it is to look at the discounts your car insurance company offers. One popular discount that many insurance companies offer is an autopay discount. Here’s what you need to know about this discount and how you can get it.

What Is an Autopay Discount

Many car insurance companies now give their customers the opportunity to pay for their car insurance automatically. This process varies slightly depending on the car insurance company, but typically you will link a bank account or credit card to your car insurance policy, and your monthly payments will get taken out of this account automatically on a set date. Depending on your car insurance company, autopay discounts can range from $40 to $100 off your annual payment, usually taken out of your first bill after you sign up for the discount. This is different from other types of car insurance discounts, which normally give you a percentage discount on each monthly payment.

Benefits of Using Autopay

There are many benefits to signing up for autopay. Even a small discount can help save you money in the long run, giving you more to spend on the things that really matter to you. Autopay also means you don’t have to deal with the inconvenience of manually making your payments every month because the process will be handled for you. You also won’t have to worry about accidentally making a late payment and having to incur a fee because of it. However, when using autopay it’s very important to make sure you always have enough money in your account to make your payments. If a payment doesn’t go through, you could incur a late payment fee, depending on how your car insurance company structures their fees.

Why Do Insurance Companies Offer an Autopay Discount?

It benefits insurance companies when you pay your bills on time every month. With autopay, they won’t have to worry about not receiving their payments on time. The company also won’t have to put effort into chasing down payments. Regular insurance payments are key for the financial stability of any insurance company – they need to maintain a strong business model in order to pay out their claims.

How to Get the Autopay Discount

Getting an autopay discount on your car insurance should be simple. Ask your car insurance agent if your company offers autopay discounts. If yes, tell them you would like to set up autopay. They can walk you through the process if you need assistance setting it up. In many cases, you can set up autopay using an app on your phone, which makes it very easy to manage your payments.

Other Discounts to Consider

If you already benefit from an autopay discount, there are plenty of other discounts to consider for your insurance policy as well. While not every insurance company offers every discount, these are fairly common among the major providers. When stacked together, these discounts can result in significant savings on your policy. Here are some of the best discounts to look at if you already use the autopay discount.

• Pay in full discount. Many companies will offer you a discount if you pay your full policy upfront instead of paying it in monthly installments. This means you’ll need to pay for the entire six months or even a full year at one time. Not everyone will have the budget to do this, but if you do, it may save you a few hundred dollars. Car insurance companies want to reward anyone who can make stable payments, which is why they offer this discount.
• Paperless billing discount. Paperless billing is another easy discount if you’re already using autopay. This means your monthly bill will come via email or through the insurance company’s app instead of in the mail. Not only is this more convenient for both you and the insurance company, but it’s also better for the planet.
• Telematics discount. Many car insurance companies are now offering significant discounts for using a tracking device in your car. When you use safe driving habits, they’ll reward you. If you’re willing to sacrifice a little bit of privacy, this can help you save money.
• Loyalty discount. If you stick with the same insurance company for several years, they may reward you with a small discount to thank you for your business.

Autopay is one of the many convenient discounts that you can sign up for when you purchase a car insurance policy. Most people prefer the convenience of using autopay anyway, so you might as well receive a discount for it. Talk to your insurance agent to see what discounts you qualify for and how to set them up.