This is true, also if you pay cash and in payments, sometimes if you get it down pretty far and you get a notice in the mail, paid in full. People that pay cash pay faster than the insurance companies do and it costs them less for bookkeepers etc.. This is the explanation I was given when I got one of my bills paid off. I paid off $4000 of a $5000 bill, and it was like Christmas, when my next bill had a zero balance.