You'll spend less if you pay your annual premium upfront at renewal time. It usually amounts to a 7% discount. Insurance companies tack on a small administrative fee on your monthly bill. By paying all at once, the company saves on expenses to process the bill, send it out, complete the transaction, and more. The other benefit of paying upfront is eliminating the possibility of being late or missing a monthly payment. Missing a payment may result in a late fee and cause your insurance company to cancel your coverage. Having that in your insurance history is a red flag to other insurers and will result in a higher premium.