Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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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

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Reviewed by Daniel Walker
Licensed Car Insurance Agent

UPDATED: Aug 31, 2021

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The Short of It

  • An on-time payments auto insurance discount can save your 15%
  • Only five companies offer this discount for paying your bill on time
  • Paying your bills on time can raise your credit score, which then lowers your auto insurance rates

Most companies offer many types of auto insurance discounts, and a discount for paying your bill on time is an easy one to earn.

However, not all auto insurance companies offer an on-time payments discount. The good news is that paying your auto insurance on time can save you money in other ways.

Before you buy auto insurance with an on-time payments discount, shop around and compare quotes to see which company can offer you the best deal.

Keep reading to learn more about how to get an on-time payments auto insurance discount. Enter your ZIP code now to compare free auto insurance quotes from companies near you.

What companies offer an on-time payments auto insurance discount?

Even though most of the top auto insurance companies offer discounts, it can be difficult to find auto insurance quotes with an on-time payments discount.

In fact, only five car insurance companies offer insurance payment discounts. These companies will give you a discount for paying your bill on time:

  • Allstate
  • Farmers
  • Safe Auto
  • The Hartford
  • Travelers

For example, Travelers lets drivers save 15% on auto insurance rates with an on-time payments discount.

Don’t worry if your car insurance company didn’t make the list. You can find a plethora of other discounts that can lower your rates, such as a safe driver discount.

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What are other reasons to pay your auto insurance on time?

Paying your bills on time will do more than just get you a car insurance discount. It can help you lower your rates by raising your credit score.

Auto insurance companies look at your credit score when calculating your rates. Insurance companies tend to believe that drivers with a higher credit score will be more likely to pay for damages from an accident out of pocket and avoid filing a claim.

This table shows you just how much your credit score can affect your auto insurance rates.

Average Annual Auto Insurance Rates Based on Credit Rating
CompanyGood Credit RatingFair Credit RatingPoor Credit Rating
American Family$2,691.74$3,169.53$4,467.98
Liberty Mutual$4,388.18$5,604.24$8,802.22
State Farm$2,174.26$2,853.00$4,951.20
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Bad credit car insurance is much more expensive than for drivers with good credit. Not paying your bills on time can cost you hundreds of dollars every month.

Another reason to pay your auto insurance on time is missing payments can lead to a lapse in coverage.

Most states require drivers to carry at least a minimum amount of auto insurance. Despite that, the Insurance Information Institute reports that around 12% of drivers don’t have valid insurance.

Driving without auto insurance can lead to fines, driver’s license suspension, and jail time.

Set up automatic payments for your car insurance or pay it upfront to make sure you don’t miss a payment and allow your coverage to lapse.

What other auto insurance discounts are available?

In addition to an on-time payment discount, there are many other auto insurance discounts to ask for.

There are three main categories that auto insurance discounts fall in, and chances are you will be able to take advantage of multiple discounts.

First, there are discounts based on you as a driver. For example, these discounts include safe driver, good student, and defensive driver discounts.

Next, we have discounts based on your vehicle. Examples of this type of auto insurance discounts include anti-lock brakes, daytime running lights, and electronic stability control discounts.

Finally, there are discounts based on your policy. These discounts include multi-policy, continuous coverage, and paperless billing discounts.

Also, keep in mind that some discounts have limitations. They may only offer a discount on a certain part of your policy, such as comprehensive coverage.

Not all discounts are automatic, either. You may have to ask for all of the discounts you are eligible for.

The good news is that most auto insurance companies will let you bundle discounts to get the most savings.

On-Time Payments Auto Insurance Discount: The Bottom Line

Only five companies offer an on-time payments auto insurance discount. However, there are many other discounts you may qualify for.

It might be hard to find affordable auto insurance with an on-time payments discount so be sure to shop around to find your best deal.

Now that you know about an on-time payments auto insurance discount, compare rates today. Enter your ZIP code now to compare free auto insurance quotes from companies in your area.