Updated: April 25, 2025
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Paying car insurance with a checking account is straightforward — simply provide your bank’s routing and account numbers during the setup process.
Most car insurance companies accept payments via bank account transfers, debit or credit cards, checks and money orders.
Setting up automatic withdrawals from your checking account can earn you discounts with certain insurers.
Most car insurance companies offer a variety of payment methods to make it easier for you to pay for your policy. Although bank account transfers, debit cards and credit cards are the most common payment options, you can pay with a checking account.
Below are some steps you can take when getting car insurance online with a checking account.
The first thing you need to do is choose the right car insurance policy based on your needs and circumstances. It would also help to check your state minimum car insurance requirements to ensure proper coverage. For more comprehensive protection, consider a full coverage policy.
Be sure to compare quotes to find the best car insurance rates, regardless of your payment method. Review premiums, fees and policy features.
Confirm accepted payment methods with your insurer to see if you may pay online using a checking account.
Using your checking account for AutoPay could qualify you for discounts with certain companies. This can help you save on car insurance.
Once you're sure about the policy, cost and payment option, you can proceed by selecting the checking account option. You'll need to provide your bank’s routing and account numbers to complete the setup, which many insurers accept.
Generally, drivers can choose the payment option most convenient for them. While availability may vary among insurers, most companies allow payments through bank account transfers, debit cards, credit cards, checks, money orders and in-app payments.
One of the most common payment methods for car insurance is a bank account. This option allows you to use your bank account to directly withdraw the payments for your policy. You can also have the full amount of your policy withdrawn to pay it in full.
Most car insurance companies accept debit cards or credit cards as a form of payment. You may incur a fee when you use your card, so be sure to check for that information to avoid a charge.
Also, setting up automatic payments or paying in full may earn you a discount and save you money.
If you’re more comfortable with paper payments, you may pay for your policy using a check or money order. You could mail them or potentially pay in person at the insurer’s office.
If you choose either payment option, you need to mail your check or money order in time to avoid being late and incurring a fee.
Many auto insurance companies have a mobile application that you are free to download. With a mobile app, you can log in to your account, monitor your policy status, file insurance claims and make monthly payments. Plus, going paperless may earn you a discount with some insurance providers.
Some smaller insurers may accept PayPal or online wallets, though this isn’t common with major providers. Among the major insurance companies, MoneyGeek found that only Progressive accepts PayPal payments. But there’s no harm in asking your auto insurance company about its available payment methods.
Progressive is the only top insurer offering a PayPal payment option. Overall, the company received a MoneyGeek rating of 86 out of 100.
Progressive is an average-rated auto insurer that offers neither cheap nor expensive rates for most drivers. It ranks well in customer complaints and financial stability but slightly falters in customer satisfaction. But its discount score is excellent.
With Progressive, you can purchase custom parts coverage, a rare add-on that covers customized car accessories like a stereo or custom wheels. Progressive allows policy payments through PayPal and may provide a discount if you pay in full or go paperless.
**NOTE: The rates above are averages for a 40-year-old with a 100/300/100 full coverage policy and a $1,000 deductible.
Depending on the auto insurance payment method you choose, you may be subjected to a fee. For instance, some insurers may charge a convenience or processing fee if you pay using your credit card.
You may be able to reduce your payments with car insurance discounts from your provider. Below are some common car insurance discounts related to payments.
Automated Payment | Description |
|---|---|
Automated Payment | Some car insurance companies provide a discount when you set up automatic withdrawals directly from your checking or savings account to pay your premium. |
Pay in Full | You’re usually given the option to pay your car insurance bill all at once or in installments. If you choose to pay in full, you may earn a discount with certain providers. |
Paperless | When you choose to go paperless — for billing and policy documents — and pay your car insurance premium online, you may qualify for a paperless discount with some insurance companies. |
Early Signing | Because car insurance is required in nearly all states, you want to avoid a lapse in coverage. Getting a quote and/or buying auto insurance before your active policy expires can help you lower your bill if the new company offers an early signing discount. |
Responsible Payment | Paying your car insurance bill early or on time can help you avoid late payment fees. And if you’ve had no late fees/insufficient funds/non-payment cancellation notices in a specific period, you may earn a responsible payment discount. But this discount is rarely offered, so confirm with your provider if it’s available. |
There are various factors affecting car insurance rates. The best and cheapest may vary depending on individual profiles and needs. Comparing quotes from multiple providers can help narrow down your options. Use MoneyGeek's calculator below to get started.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
May 08, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
This guide will help you purchase car insurance online using your checking account. By providing your bank's routing and account numbers during payment setup, you can easily manage your premiums.
Many insurers accept this payment method and may offer discounts for setting up automatic withdrawals. Be sure to compare quotes from multiple providers to find the best rates and coverage for your needs.
Below, MoneyGeek answered some frequently asked questions to help you learn more about car insurance companies that accept PayPal as a payment method.
Yes, most car insurance companies accept car insurance payments online with a checking account.
Typically, you can pay your car insurance bill using your bank account, debit card or credit card. You may also use a check or money order.
Most auto insurance companies don’t accept PayPal payments. Progressive is the only major car insurer that MoneyGeek found that offers PayPal as a payment option.
It’s possible to earn a discount with certain insurance providers if you set up automated payments, pay all at once or go paperless, among others.
Study Overview
MoneyGeek collected and studied car insurance quotes for a sample driver profile to come up with national and state averages. We focused on the price of liability-only insurance, the rate difference between liability insurance and full coverage insurance, as well as the price changes for drivers with at-fault accidents and speeding tickets.
Data Sources and Depth
Our team gathered information from state insurance departments and Quadrant Information Services. We studied 83,056 quotes from 46 companies across 473 ZIP codes.
Driver Profile
When determining the average annual cost of car insurance, MoneyGeek used a sample driver persona with the following characteristics:
We modified the profile by location, coverage type and coverage amount to find out the average insurance costs across the U.S. for different coverage needs.
Coverage Levels and Deductibles Explained
Liability coverage does not have a deductible, so for a liability-only auto policy, a deductible would not apply. If you have full coverage, which includes comprehensive and collision insurance, you have a deductible for each — the deductible amount can be the same for both or different. It is what you have to pay out of pocket before your insurance provider pays to repair or replace your vehicle in a covered claim. Full coverage offers the best financial protection since it covers injuries and damages you cause to others and damage to your vehicle.
In terms of liability limits, 100/300/100 stands for:
Meanwhile, 50/100/50 means:
When gathering national averages, we used a full coverage policy with 100/300/100 liability limits and a $1,000 deductible for both comprehensive and collision insurance. Conversely, our team used a full coverage policy with 50/100/50 liability limits, with a $1,000 deductible for both comprehensive and collision, when collecting state-specific quotes and information.
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
