14 Bills That Will Save You Money if You Pay Upfront

While it may be difficult to do the first time around, saving some money and paying certain bills upfront for the year, instead of making monthly or semi-annual payments, can save you hundreds of dollars. The following are the most common bills people pay in full instead of in installments to pay the lowest rate possible.

On This Page

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  1. Auto Insurance

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  2. Health Insurance

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  3. Tuition or School Fees

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  4. Gym Memberships

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  5. Subscriptions

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  6. Property Taxes

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  7. Utility Bills

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  8. Rent

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  9. Homeowners and Renters Insurance – Even Business Insurance

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  10. Travel Plans

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  11. Home Security System

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  12. Home Maintenance

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  13. Cable, Internet and Phone

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  14. Long-term Care Insurance

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  Paying Bills Upfront FAQs

1. Auto Insurance

Most car insurance policies renew every six months, and people either pay monthly or in varying installments. Many insurers offer a pay-in-full discount if you pay for 6 or 12 months of coverage upfront. Not only will you avoid installment fees but there is also a 6–14% discount. ^[1]

2. Health Insurance

If you have group health insurance, you’re locked into having premiums deducted from your paycheck, but if you have a private plan, you may have options. Paying upfront for the year may help you avoid administrative or monthly processing fees, depending on the insurer.

3. Tuition or School Fees

School tuition and fees can be some of the heaviest bills you’ll ever owe. Some private schools, colleges and universities offer a discount for paying the semester or year upfront. Paying in full also helps to avoid finance charges on balances.

4. Gym Memberships

Unless there’s a special, like $10 a month for a year, paying the annual gym membership in full may be significantly cheaper than paying monthly. A gym may also waive registration fees or offer a couple of free months if you pay upfront. Yoga unlimited memberships are much cheaper than individual classes and class packages, too, if you’re a regular.

5. Subscriptions

Whether it’s a streaming service or software that you need on your computer, an annual plan with Netflix, XBox, Spotify, Apple TV or Music, Adobe, or Microsoft will be cheaper than a monthly one. If you have magazine subscriptions or subscription boxes, meal kits (for you and your pet) or any type of regular service, see how much you’ll save paying annually instead of monthly.

6. Property Taxes

Some counties and municipalities offer a 1–3% discount for paying property taxes in one installment at the earliest date. ^[2] You may want to ask your county property assessor if your home is eligible for this type of savings.

7. Utility Bills

Some electricity suppliers, trash collectors and water companies offer discounts for prepaying utility bills. All you have to do is keep a minimum balance running or pay for the year upfront to be eligible for the discount, if there is one in your service area. ^[3]

8. Rent

Depending on your landlord, you may get a discount for paying the full lease term upfront. Paying a full year’s worth of rent upfront is not a joke, so make sure to document the payment and perhaps have it listed in the lease contract.

9. Homeowners and Renters Insurance – Even Business Insurance

Homeowners insurance, renters, and even other types of policies (motorcycle, RV, business insurance) may offer a pay-in-full discount, much like auto insurance. Discounts vary by carrier so it pays to compare rates and ask if they offer a significant price break if you pay a year’s worth of coverage upfront

10. Travel Plans

Booking flights and hotel stays early and paying in full may earn you discounts, depending on the airline and the hotels you’re interested in.

11. Home Security System

Just as it is with buying any high-ticket item, like a car, buying a home security system upfront will be much less expensive than financing or leasing.

12. Home Maintenance

You can pay for a home warranty plan upfront for a year and be covered for repairs on specific items like dishwashers, refrigerators, air conditioners, washing machines and more. You may have to replace an item that is beyond repair or not worth the cost, and the warranty will help cover some of the cost.

13. Cable, Internet and Phone

Ask your provider(s) about upfront payments for cable, internet and cell phone service. If that’s not an option, signing up for automatic payments usually means a discount in monthly billing.

14. Long-term Care Insurance

You may be able to get a much better price if you pay an upfront lump sum versus paying premiums for long-term care insurance. An annual premium can be around 12K to 2000K or more, depending on factors such as age and insurer. ^[4]