How do you pay your car insurance?

[Grumpier Than Uncle Joe]

Every six months. I just did. If you pay monthly you're either poor or can't do math. (Or your company doesn't offer good paid in full deals)

As an insurance agent for 35 years, you're a bit too narrow here in your thinking, Red.

Even with a huge paid in full discount that companies like Progressive (we represent them, I know) have, every company rates different factors with different weight.  My company insures my two cars and home together and I pay monthly on both policies.  I get a huge multi policy discount which offesets Progressive's paid in full.  My company does not charge service fees for the automatic pay plan either.

People like yourself with one vehicle and maybe a renter's policy might very well get a deal using a paid in full program, even some with conditions like mine it's worth it, but it's not always the case.

[Grumpier Than Uncle Joe]

As a pricing actuary (who prices auto, homeowners, renters, and condo insurance, I'd just like to note that every company I've ever seen gives discounts for paying every six months. They're usually pretty substantial. You could still get that discount on top of your multi-line discount. Companies want your money up front so they'll be able to get more investment income from it before they have to pay it back out, and so they will usually pass that discount on to you.

Absolutely, but other discounts may outweigh paid in full discounts.  My company's paid in full is nice but not as good as Progressive, but I have two cars and house so I get a huge multi policy discount and I can't afford to pay both in full.  It's still cheaper than splitting them to two companies where I can pay the auto in full

Paid in full is excellent but I retain more customers who are on an automatic pay as they tend to shop less and the payments are easier to make.

[Grumpier Than Uncle Joe]

Once every six months.  Mine is also less expensive if I pay it every six months.  I wish they had an option every 12 months.  The registration is every 12 months.  The inspection is every 12 months.  It's silly to have insurance every six months.  What a hassle.

How can they raise your rate in 6 months if they lock you into 12?  They may not necessarily raise it, but it will happen more often than not.