This Simple Move Saved Me $175 on Car Insurance in 2024

Car insurance is an essential expense that drivers should prioritize. The rates drivers pay for insurance coverage vary depending on factors such as car make and model, age, driving history, location, and policy coverage details. But there are opportunities to save money on car insurance costs.

One way drivers can trim this cost is by changing their billing method. Find out how one writer saves $175 each year on car insurance costs.

Paying insurance premiums in full can be a win for your wallet

Many of the best car insurance companies extend a discount to drivers who pay their insurance premiums in full. If you can afford it, it can be advantageous to ask your insurer if it offers a paid-in-full discount. Switching your bill payment strategy could result in significant savings.

My auto insurer offers six-month insurance policies. I can pay my premiums monthly or every six months, but I qualify for a discount when I pay for six months of coverage upfront. A discount of around 15% is applied to my premium when I pay in full. For this reason, I avoid paying monthly.

Thanks to paid-in-full discounts, I saved about $175 on car insurance expenses in 2024. While that's not a massive amount, it helps me put more money toward my financial goals, which is a major win for my wallet. Drivers looking to trim their insurance may want to check with their insurance company to see if they qualify for paid-in-full discounts.

Related: Check out our list of the cheapest car insurance companies and get a quote to see if you can save money on insurance policy costs.

Drivers can do this to make paying in full more affordable

For drivers who find the idea of paying several hundreds or thousands of dollars at once intimidating, I have a suggestion that may help. Saving up for six-month or annual premium costs throughout the year can help eliminate the stress of paying the entire balance at once.

You can set up automatic recurring transfers through your bank. You can choose to set aside money as often as you'd like. For example, weekly, bi-weekly, or monthly. Breaking the total premium cost into more manageable chunks can make paying in full less overwhelming.

I set aside money bi-weekly for upcoming expenses like car insurance. When my auto insurance renewal bill arrives in my mailbox, the money is already in my high-yield savings account. I feel less overwhelmed because I already budgeted for and saved up for this expense. I recommend a similar approach for drivers looking to save money on insurance.

Related: Looking for a high-yield savings account? Click here to check out our curated list of options offering competitive APYs now.

Look for opportunities to save on insurance

Drivers feeling financially stressed should look for ways to trim their insurance costs. One potential way to save is by getting a quote to see if switching insurers could result in more affordable car insurance premium rates.

Another way to save is by taking advantage of policy discounts. Other discount opportunities could be available if a paid-in-full discount is not offered. Some examples may include bundled insurance policy discounts, good driving discounts, and multi-car discounts. Don't ignore discounts that could make your insurance premiums less costly.