What is a pay in full discount?

A few insurance companies have determined that they have better loss experience with customers who can pay their insurance premiums in full. In order to allow their rates to reflect the better loss experience of this group, they offer a pay in full discount. These discounts range from 5% on up to 10%. If your discount is greater than the return that you are getting on your short term money, then you should take them up on the offer and pay in full to receive the discount.