Insurance companies don’t usually offer temporary car insurance. It is either a 12-month commitment or a 6-month commitment, which you can cancel at any time.
Most car insurance companies usually insist on six months because six months is just the right time for car insurers to evaluate their drivers.
Six months is enough to find out your recent driving record, which will help in making adjustments if the need arises.
6-month car insurance will require a renewal after six months, which allows the company to adjust your rates to avoid losing money. Especially if you get into an at-fault accident within the first six months.
A 6 month car insurance policy can also benefit you because you have six months to be a responsible driver.
Being a responsible driver can qualify you for lower rates if your previous history portrays you as risky.
6 Month Car Insurance Premium
The premium is an amount you pay to the insurance company in exchange for coverage, which will last you for six months.
During these six months, the car insurance company will financially cover you at your chosen coverage and limits.
After six months, your set period will end and the insurer can recalculate your rate for renewal.
The renewal fee may be more than the previous or less depending on your driving habits during the period of six months.
Paying for your six-month premium upfront qualifies you for a discount. It is usually better than paying in installments due to the extra installment fee you will be charged.
Benefits of the 6 Month Car Insurance Policy
The six-month car insurance policy is designed to benefit the car insurance companies but you can also get some benefits from it. Some of the benefits for you are listed below:
- You have the opportunity to get discounts: You can qualify for discounts through several ways, you only need to wait for a few months for it to be reflected after renewal.
- You can Shop Around: If after registering for the six-month policy you feel it is too expensive. You have the time to shop for another insurance to avoid a renewal.
- You have the opportunity to negotiate: If you find a better deal elsewhere, you can call your insurer’s attention when it’s renewal season to negotiate.
Companies with the Cheapest Six-Month Policy
Some company’s quotes and rates are quite cheaper than others, below is the list of car insurance companies with cheap and affordable six-month rates:
USAA: this company has the cheapest cost for six-month policies at $527. However, it is important to note that USAA has a specific target audience.
They are available for only veterans, military members, and their families.
Erie Insurance: this company also has a cheap cost for six-month policies at $619
Nationwide: this company costs $641 for six-month policies
Geico: they cost $654 for six-month policies
The companies above have the cheapest cost policies, while others range from $741 to $1070, making farmers’ companies the most expensive.
Factors that Affect Car Insurance Costs
Some factors affect car insurance quotes and prices, below are some listed:
Location: if the area you reside in has high rates of accidents statistically you tend to pay more for car insurance.
Age: if you are an inexperienced young driver, you tend to pay more for car insurance
Driving Record: if you have a driving record that includes violations, speeding tickets, and at-fault accidents. You will be considered to be a highly risky client and thus pay more for insurance.
Credit history: if you have high credit scores you tend to pay less for car insurance and vice versa.
Gender: if you are a male driver you tend to pay more for insurance because men are more likely to drive rough and get in accidents.
Marital Status: if you are married you pay less for insurance than a single, a widow/widower, or divorced person. This is because married persons are considered to have a very good credit history.
Vehicle: if your car is new, it will be more expensive to insure
Deductible, limit, and coverage: the coverage, limit, and deductible you choose can also influence the price of your car insurance.
Is a 12-Month Policy Better Than A 6-Month Policy?
While the 6-month policy is quite rampant and has become the norm the 12-month policy also has its advantages that can be better for you.
When you choose the 12-month policy it means you will pay for your insurance for a year and it can also help you forget about insurance payments for the year.
If you were able to get a good discount and low rates. You don’t have to worry about it being changed in 6 months, you get to benefit from it for a year.
Can I Transition From 12 Month to 6 Month Policy?
Yes, you can. However, it is subject to the approval of the state you reside in. Due to such regulations, you cannot transition in some states.
Is a 6-Month Policy Cheaper Than a 12-Month Policy?
The six months policy will always seem cheaper than the 12-month policy due to the short period of time. However if you choose a 12-month policy and compare them it will most likely be similar or almost similar.
It is best to choose the policy that works best for you as the prices are almost the same.