Six-month auto insurance is a type of insurance where the car owner makes a one-time payment to cover their car for six months instead of the traditional 12-month policy plan. This reduced auto insurance term period gives consumers the flexibility they need to determine whether to stay with their current insurer or switch to another. it also helps insurance providers to reassess the driver’s policy rates for the next period.
why auto insurance companies prefer six month policies
Most auto insurance providers adopt a six-month auto insurance term instead of other policy terms based on what they see on your driving record and how they calculate your policy rate. As time goes by, your driving record can gain or lose traffic violations and accidents.
A six month auto insurance policy gives insurers the opportunity to adjust their rates to cover the losses they have incurred by taking on their risks. this policy term also benefits you as a customer. For example, let’s say your record used to contain reckless driving changes, but has recently improved significantly because you’ve been driving more carefully. A six-month plan gives you the freedom to find a fair rate based on your current driving record. Because your current provider wants to keep your business, they might consider lowering your next six-month premium.
average rates for a six-month car insurance plan
Six-month auto insurance rates vary from company to company. allstate says this depends on several factors, including state laws, the car you drive, your driving habits, auto loans, and the limits and deductibles you choose. Here are the average rates for semi-annual premiums from different insurance companies, according to Zebra:
- Nationwide – $636
- all state – $951
- farmers – $618
- geico – $545
- mutual liberty – $751
- progressive – $896
- united states – $483
- state farm – $884
- an excellent credit score
- milestones like birthdays
- traffic violations and ticket expiration
- paid-off car loans
- where do you live
- how old are you
- your gender
- zip code for your area
- what kind of car do you drive
- You can switch from one insurance provider to another if your current provider doesn’t offer the terms you want.
- paying in installments could give you financial relief because you don’t have to pay all of your annual insurance premiums up front.
- Enjoy the freedom to re-evaluate your auto insurance needs.
- You can pay twice a year to prevent monthly processing fees from adding up over time.
- If traffic violations will soon expunge your driving record, you don’t have to wait all year for your rates to be reviewed.
- Insurance companies can quickly reinstate terms that minimize the risks they accept on your behalf.
- drivers who pay off their auto loans can get better rates, because insurance providers typically use your credit score when calculating your rate.
These values are not the conclusive rates you would pay for your six-month insurance premiums, as rates change over time. they simply give you a rough idea of how much you can expect to pay so you can make an informed decision.
how does a six month auto insurance policy work
With six-month auto insurance policies, you pay an agreed amount to cover your car for a set six-month period. Once that period is over, your policy must be renewed and the insurance provider may re-evaluate your auto insurance rates. You can also decide not to pay the full six months upfront, but rather spread it out over recurring monthly payments throughout your policy.
As an incentive, some companies offer a small discount to drivers who pay the full amount at one time. Depending on your driving record, your insurance rates may be higher or lower.
factors that may affect your rates
Besides your driving record, insurers consider other factors when deciding whether to lower or raise your rates. these include:
benefits of a six month car insurance policy
The benefits of a six-month auto insurance policy fall into two categories: flexibility and review. flexibility benefits include:
Review benefits include:
disadvantages of a six-month auto insurance policy
One of the downsides to having a six-month auto policy is that you have to keep track of your expiration dates and recurring renewals. if you are likely to miss payments due to shorter terms, you risk losing your coverage by breaching the contract.
how to keep track of your recurring policies
If you have a six-month auto insurance policy, you need to know how to keep track of your insurance records so you don’t risk losing your coverage. the length of your six-month policy term depends on the effective date of your insurance. write down that date so that you can track it effectively.
for example, if your term start date is January. 1, his next due date would be June 30. so, before that due date arrives, send in your next six months insurance payment so you don’t risk losing your policy. set a reminder on your phone or mark the date on your calendar a few days or weeks before it arrives so you don’t forget to renew.
Is a six-month policy right for you?
of the 50 states of the usa. In the US, 49 require you by law to insure your car. you may need to purchase at least a certain level of coverage before you take your vehicle on the road. The auto insurance provider and type of policy you choose will depend on your needs, demographics, and circumstances. If you’re considering a six-month auto insurance option, consider the following factors:
- Will your driving record improve soon?
- Are you paying off your car loan in the next few months?
- Do you have the funds to pay for your entire insurance policy at once?
Whenever you get an auto insurance quote, ask for estimates of 6-month and 12-month policy costs, and compare multiple companies. a six-month plan might be more convenient and affordable for you as the customer, as well as for the auto insurance provider.
Check this out if you need additional information, resources, or guidance on auto insurance.