Insurance carriers will likely reward drivers paying their auto insurance premiums upfront for a full year. Not everyone, especially the younger generation, has access to funds needed for this option. However, drivers capable of paying their auto insurance in full will save a nice sum in the long run.
The option to pay in full can also be useful to people with lower credit scores since they have a harder time getting accepted for a monthly plan with an insurance agency. The downside of this approach, other than having to pay thousands of dollars upfront, is the fact that it’s bad for those drivers that move from the state within that one-year period, as reimbursements on policy cancellation can take a while.