Are There Paperless Billing Discounts for Car Insurance?
Last Updated on August 16, 2020
These days, all companies are going paperless. Not only is it better for the environment, but it means less overhead for them from printing costs and even the cost of having staffers manually mail bills out. When it comes to insurance, you might wonder if you will get a discount for doing paperless billing on your account rather than receiving a statement.
Unfortunately, the answer is not as straightforward as you might have hoped.
Yes, Some Insurance Companies Offer Discounts
Some insurance companies, such as American Family Insurance, do offer discounts for paperless billing. Others do not announce it, but they will give you a slight discount each year on your premium if you go paperless – something you can see online when you access your account.
Paperless might save you money, but it also saves you the hassle of having to file your insurance documents – especially because they are all kept online in a sole location.
Why Opt for Paperless Billing?
By using paperless billing, you get policy documents, cards, and even billing statements either sent through your system or via email – depending on how you and your insurance company set it up. You can access everything online, including proof of insurance. Some insurance companies not only let you log in and print your physical insurance card but also let you access it via a mobile app so that you can show the proof of insurance on your phone – no printing necessary.
How Do You Enroll in Paperless Billing?
Every insurer has its method for enrolling in paperless billing, so you will want to ask your insurance company or look at your online account. Most will have an option under “statements” to opt-in for paperless, and then you follow the prompts to set it up. Others require you to call in and ask for paperless when you sign up for insurance.
Some will require that you opt for paperless at the time you renew and you will only have a window to request paperless to unlock that discount – otherwise, you have to wait until your policy is up for another renewal.
Most Insurance Companies Combine Paperless Discounts with AutoPay Discounts
Most insurance companies will prefer that their policyholders use auto pay and paperless to unlock discounts; therefore, you may need to sign up for autopay first. Autopay means that your monthly or annual premium comes straight from your bank account instead of you sending in the payment when it is due. Not only does this guarantee the insurance company receives payment, but it lessens how much they spend on cashing payments and manually applying them to their policy accounts.
Most companies will give you a discount for automatic drafts from checking or savings accounts, or you can do an automated funds transfer each month. You will want to check with your insurance company to see what discounts you can get if you do an autopay plus paperless billing – if any.
There are More Ways to Save on Auto Insurance Too
While going paperless and enrolling in autopay is a great start, make sure you look for other ways to save on your auto insurance premiums. You may qualify for multiple car discounts, multiple policies, and even good driving.
Some popular discounts offered by most insurers, even if they do not offer paperless discounts, include:
- Good payment history over time. Throughout your policy, some companies will give you a discount on insurance if you pay your premiums on time every month for a specified number of months.
- Paid in full discounts. If you pay for the entire year of insurance upfront, most companies will offer you a discount versus paying every six months or breaking it into monthly payments.
- Safety feature discounts. If you have certain safety features on your vehicle, you may qualify for extra discounts, including airbags, seat belts, and ABS.
- Student discounts. You may qualify for student discount opportunities, especially if you have a college student getting good grades.
The bottom line is you should always utilize every discount available to you, whether that is a paperless discount, autopay, or some of the other options above. The more you unlock, the more you save each year. If your insurance company doesn’t have many discount options, shop around and see what companies give you an excellent rate plus offer some of these accessible discounts.