What is Auto Pay Auto Insurance Discount?
An auto pay auto insurance discount is a decrease in your car insurance rate based on the insurance company being able to eliminate some recurring administrative fees. If you sign up for automatic payments, they’ll typically reward you with a discount on your auto insurance premium.
When you set up automatic payment for your car insurance premium, your insurance company knows that your bill will be paid – and paid on time. This saves them money and time on administrative fees and bank charges. And it helps you, too. Not only will you get a car insurance discount on your premium, you won’t have to worry about a lapse in coverage, which could be disastrous.
How Much Will You Save With Auto Pay Insurance Discount?
Ultimately, it’s worth it for car insurance companies to offer a modest discount (usually about 5%) off your premium once you set up automatic payments. Additionally, this reduces the chances of your car insurance accidentally lapsing, which is bad for drivers and insurance carriers alike.
At Freeway Insurance, our agents are knowledgeable about helping you set up your auto pay function and finding you any other discounts that you are qualified to receive.
Why Choose Auto Pay for Your Insurance Premium?
The most convenient thing about the auto pay discount is that it is easy to set up and doesn’t require you to do anything else to qualify. After all, you were always going to have to pay your bill each month. Setting up automatic payments means you don’t have to worry about forgetting a payment, and you can save money each month on your premium. You must request this discount from your carrier, who will automatically apply it after that point.
Who is Eligible for the Auto Pay Discount?
Pretty much anybody will be welcomed to set up auto pay. In some cases, you may be required to set up auto pay – particularly if you’ve been caught driving while uninsured.
Why Do Carriers Offer Auto Pay Insurance Discounts?
Car insurance carriers offer auto pay insurance discounts because it reduces the number of people who miss payments each month. It also reduces the number of customers who let their car insurance lapse.
Most drivers have many different bills to pay each month. If someone gets busy, it’s easy to forget to make a car insurance payment. When this happens, though, the carrier must devote time and resources to contacting these drivers and getting them to pay.
How Do Automatic Payments Work?
With automatic payments, you set up a payment method online and agree to when the payment will come out. After that, payments will come out on the appointed day from the chosen payment sources.
The chances are that you have automatic payments for one or more of your existing bills. Automatic payments for your car insurance work the same way. As a bonus, you’ll qualify for a nice discount on your car insurance premium!
You can also set the auto payment schedule on your own terms. For example, if you prefer to pay for insurance 6 or 12 months ahead of time instead of month to month, you can still set those payments to pay automatically when the time comes.
What Are My Auto Pay Payment Options?
Most car insurance carriers require you to set up a checking or savings account for automatic payment. You will likely not be able to pay with a debit or credit card.
Why can you not use your cards? In most cases, checking and savings accounts are more secure than debit or credit cards, especially since the latter are so easily lost or stolen. Additionally, preventing people from paying with credit cards keeps consumers from racking up debt that they may not be able to handle.
Are There Other Insurance Discounts Available?
Every car insurance carrier offers a number of special discounts. These usually include discounts for safe driving, installing car safety features, and even being a student with good grades.
It’s impossible to know which discounts your carrier offers unless you speak with them. This is likely to be worth your time: you may already qualify for other discounts and not even know it. It’s possible to get both the auto pay discount and other discounts together.
Get the Best Car Insurance Today!
Now you know how the auto pay insurance discount works. But do you know where to find an insurance company that combines excellent discounts with great base prices?
Freeway Insurance is here to help you save money with incredible discounts and great coverage at even better premiums. We can quickly and easily provide you with an online quote. Or feel free to give us a call at 800-777-5620. Finally, you can also visit us at an office near you.