Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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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 partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

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.

Here's what you need to know...

  • Automated and paperless billing services are a convenience to car insurance policyholders, and they can also help you to save money in some cases
  • Remember that failure to pay your premium on time could result in an expensive lapse in coverage
  • Focus your attention on billing and payment options when selecting a car insurance company to buy your coverage from

When you set up a new car insurance policy today, your provider will likely ask you about your preference for automated payments and paperless billing.

At first glance, these options may seem like convenience preferences that play little or no role in your coverage or finances.

In reality, however, your selected billing and payment methods can affect the pricing of your policy and can even protect the continuity of your coverage in some cases.

Compare car insurance quotes and options by using our free rate tool above. Enter your zip code and get started finding out how much money you could save on your premiums.

The Importance of a Convenient Billing and Payment Process

Most drivers are legally required to purchase and maintain an active auto insurance policy at all times. If you have a lapse in coverage of even a single day, you may face legal consequences associated with being uninsured.

These consequences may include monetary fines, the suspension of your license, and other options. More than that, if you are involved in an accident, you will not have coverage in place to pay for your expenses.

Remember that many auto lenders also require you to be fully insured according to their own requirements at all times. Failure to comply with these requirements could result in a default of your loan terms.

When you set up automated payments and convenient paperless billing, you may reduce the chance of having a lapse in coverage related to a slow payment or a financial oversight on your part.

Because the billing and payment process is digitalized and automated, you may not have to think twice about it. You only have to make sure that you have ample funds available in your linked bank account on the scheduled premium payment date.

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How the Billing and Payment Process Can Save You Money

In addition to protecting you from the financial and legal consequences associated with having a lapse in your auto insurance policy, automated payments and paperless billing may save you money.

Many car insurance companies recognize that there is an additional administrative expense on their end associated with printing billing statements, mailing envelopes, gathering payments and more for all of their customers regularly.

They also recognize that many people who pay their premium manually may pay a day or two later than they should, and this can trigger even more billing statements being printed and mailed.

When you automate and digitalize the billing and payment process, you are saving the insurance company a considerable amount of money related administrative overhead on a regular basis.

Some car insurance providers pass these savings onto consumers by offering a discount for paperless billing and automated payments.

While some car insurance companies combine these discounts together, others may offer two separate discounts to policyholders for these account options.

Other Billing Options that Could Save You Money on Car Insurance

Many drivers enjoy the convenience associated with breaking a premium large premium payment into affordable monthly payments, but some drivers do not want to deal with the regular hassle associated with keeping up with extra monthly payments

If you choose to pay your premium amount in full rather than to set up an automated monthly payment, you may also qualify for a discount on your premium.

Because the financial benefits associated with the discounts for these various payment options vary, consider requesting multiple quotes from different car insurance companies to identify the best deal possible.

Paperless Billing and Automated Payments

You may have a fair idea about how you plan to pay your insurance premium before you start shopping around for new car insurance quotes, and you can easily look for a provider that offers a discount based on your preferred payment method.

For example, if you choose to make automated monthly payments and set up paperless billing, you can use the Internet to search for a list of top auto insurance companies that offer a discount for this and that have a great reputation in the industry.

Selecting the Right Insurance Companies to Request Quotes From

Because multiple car insurance companies offer a premium discount for paperless billing and automated payments, you may prefer to be more discerning about which providers you contact for a quote on a new car insurance policy.

Through internet research, spend time learning more about the reputation and financial strength of leading providers. Create a list of the top three or four providers that you want to contact for quotes online based on these factors.

Making Your Rates More Affordable

Using a paperless billing and automated payment discount is a convenient way for many drivers to save money on car insurance, but it is not the only money-saving idea available.

There are numerous other car insurance discounts that you could qualify for, and you can also save money on your auto insurance policy through these options:

  • Ask for a higher auto insurance deductible
  • Bundle your auto coverage with a home or life policy
  • Insure multiple drivers or cars under one policy
  • Relocate to a zip code with more affordable insurance rates
  • Choose to drive a vehicle that is more affordable to insure
  • Improving your driving record

Car insurance rates and your personal factors that determine auto coverage pricing fluctuate periodically over a short period of time.

Therefore, while it is important to compare insurance rates now to find the best deal possible, you should also compare rates for new coverage every six months.

When you automate the billing process for your auto insurance policy, it is easy to overlook this step. Consider marking your calendar so that you remember to look for better auto insurance rates regularly in the future.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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Getting the Coverage that You Need

Setting up affordable coverage with paperless billing and automated statements is beneficial if you want to avoid an unpleasant and potentially expensive lapse in coverage.

Automated billing can make it easier for you to make the premium payment on time, but you also need to set up the right coverage type and limits for your needs.

Now is a great time to review your state and lender car insurance requirements and to make any coverage changes that are needed. Then enter your zip code into our free rate comparison tool below to see how much you could save on the coverage you need.