What does it mean when a policy is ‘fully paid up?’
Drivers who buy fully paid-up car insurance have paid for their entire policy period upfront. This is a good strategy if you are trying to save money as most insurance companies offer a paid-in-full discount, and you also eliminate the risk of missing a payment. You can shop online for an affordable fully paid-up car insurance policy, but, remember, you should also get at least 3 quotes to verify that you are picking the best policy for your needs.
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UPDATED: Apr 29, 2022
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- A fully paid-up policy is a car insurance policy that has been paid for upfront
- Drivers can shop online to receive free car insurance quotes
- Drivers can reduce their rates by adding applicable discounts to their policy
Everyone is looking for some bit of certainty to grasp onto these days, and when you buy fully paid-up car insurance, you can be certain that you’ll have the coverage you need for your entire policy period. A car insurance policy that has been paid in full requires you to make one large payment when you purchase your policy. However, after that, no more payments will need to be made to keep the policy in good standing.
Shopping for car insurance online can help you find affordable fully paid-up car insurance policies that not only fit your budget but can provide you with the coverage you need as well. Keep reading to learn how paying for your entire insurance policy can benefit you and how to get discounts on your car insurance.
You don’t have to put off finding fully paid-up insurance quotes. Enter your ZIP code to start comparing free quotes right away.
What is a paid-up insurance option?
Shopping online is incredibly convenient and can allow you to compare car insurance coverage from multiple companies at once, but do you know what an insurance company means when it says that it offers drivers a paid-up option and a discount along with it?
When a car insurance company provides fully paid-up car insurance policy discounts, it is asking drivers to pay for the entire policy period upfront instead of making smaller payments every month in exchange for a discount. It might seem ridiculous to pay for your insurance upfront but getting fully paid-up car insurance quotes could be highly beneficial for you in the long run.
Why Drivers Should Pay for Insurance Upfront
Paying for your entire policy period with one large payment, if you can afford it, can not only help you save money but can also keep your policy in good standing. For example, some people can get so caught up in the many other demands of their lives that they forget to make their insurance policy payments.
Now, most insurance companies offer a grace period before canceling a policy, but if you pay for your insurance policy in full, you won’t have to worry about making another payment for the rest of the policy period. In addition to the peace of mind that paying for your policy in full can bring, you could also get your money back.
That is to say that you could get a refund if you find a cheaper policy online. Since you’ve paid for a whole policy period, if you were to cancel your coverage in the middle of your policy, your insurance company would have to give you back whatever money hadn’t been utilized.
It is vital to remember that when you get money back from your policy you are not receiving paid-up additions, only a refund. What are paid-up additions? Paid-up additions actually have nothing to do with car insurance so you’ll only have to be concerned with them if you are considering buying a whole life insurance policy.
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How much does a fully paid-up insurance policy cost?
Fully paid-up car insurance rates from one policy to the next will never be mirror images of each other because insurance companies write up unique rates that match each unique individual applicant. When you apply for a quote online, you’ll notice that you need to share a lot of intimate details about yourself to help with an insurance company’s underwriting process. Your age, gender, and even marital status can have quite an impact on your rates.
While you won’t know your exact rate until you start requesting free quotes, you can look below to find the average rates people in your age bracket are typically offered by some of the biggest insurance companies in the business:
Average Monthly Rates for Car Insurance by Age and Gender
|Insurance Company||Average Monthly Rates for a Single 17-Year-Old Female||Average Monthly Rates for a Single 17-Year-Old Male||Average Monthly Rates for a Single 25-Year-Old Female||Average Monthly Rates for a Single 25-Year-Old Male||Average Monthly Rates for a Married 35-Year-Old Female||Average Monthly Rates for a Married 35-Year-Old Male||Average Monthly Rates for a Married 60-Year Old Female||Average Monthly Rates for a Married 60-Year-Old Male|
If this data table has you worried about your chances of procuring a low-cost insurance policy, you’ll be happy to hear that there are plenty of steps you can take to make fully paid-up car insurance quotes much more affordable.
How can drivers reduce their car insurance rates?
One of the best ways to keep your rates low is to make sure that you practice safe driving techniques every time you operate your vehicle. While you can’t control what other drivers will do out on the road, you can certainly work to make the road a safer place to drive by slowing down when you see a yellow light, coming to a complete stop at stop signs, and getting out of harm’s way if an aggressive driver is barrelling down on you.
While taking safe driving seriously is an excellent way to keep your rates low, you should always set aside some time to review your policy, not only to make sure that it is up-to-date but also to check that every discount you qualify for has been added to it.
You might be shocked at just how much you can save when you take the time to do this. If you’re not convinced that discounts are worth the effort, just take a look at how much you can save when you qualify for certain discounts:
Car Insurance Discounts Available by Company
|Discounts||21st Century||AAA||Allstate||American Family||Ameriprise||Amica||Country Financial||Esurance||Farmers||Geico||Liberty Mutual||MetLife||Nationwide||Progressive||Safe Auto||Safeco||State Farm||The General||The Hanover||The Hartford||Travelers||USAA|
|Adaptive Cruise Control||x||x||x||x|
|Daytime Running Lights||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x|
|Electronic Stability Control||x||x||x||x||x||x||x||x||x|
|Forward Collision Warning||x||x||x||x||x||x||x|
|Lane Departure Warning||x||x||x||x|
|New Customer/New Plan||x||x||x|
|On Time Payments||x||x||x||x|
|Seat Belt Use||x|
|Students & Alumni||x||x||x||x||x||x|
As you can see, when you set aside some time in your busy schedule to review your policy, you could greatly reduce your car insurance rates and add some more padding to your bank account.
What You Need to Know About Fully Paid-Up Car Insurance
If you were to make one payment that would cover your entire policy period, your car insurance would be fully paid up, and you wouldn’t have to worry about making another payment during the entire policy period. You could even save some money as most insurance companies offer a paid-in-full discount.
Of course, the best way to save money on your insurance is to drive safely and pay attention to other drivers on the road, but you should regularly review your policy to make sure that you aren’t missing any discounts that you qualify for.
You can also save money on your insurance by shopping online to find the best policy for your coverage needs. Request at least 3 free insurance quotes when you start shopping so you can have enough information to make the best choice for you.
You can get free fully paid-up insurance quotes from insurance companies near you when you enter your ZIP code today.