6-month car insurance

6-month car insurance

Sommaire

Introduction

In the first place, 6-month car insurance policies are the norm for many insurance companies. Not to mention this policy length is the shortest term that most companies offer unless your policy is canceled mid-term for some reason. 

Most insurance companies sell 6-month car insurance policies because the brief term lets them recalculate your rates frequently to ensure that your insurance policy is priced fairly. 

In most cases, companies offer 12-month policies. In case that a year-long term is available, consider whether you can personally benefit from locking in your policy rate for a long time. 

This may depend on your insurance policy rated for your area or driving infraction. This is known for insurance policy rate volatility.

Why do car insurance policies last for six months?

The 6-month car insurance policy duration imposed by most car insurance companies keeps things simple for them and you . 

The risk you represent to your insurance company is calculated through your demographic profile and driving record. This is generally calculated over a 6-month period which usually is the length of a policy period. 

During this 6-month time lapse, infractions such as a ticket or an accident will not affect your premium rate until you know the price of the next policy. 

Insurance companies usually use a 6-month policy period to recalculate your policy rate to account for any recent citation or accidents.

A shorter policy cycle lets insurers to accurately calculate your rate.

How insurance companies can calculate 6-month car insurance rates?

Temporary car insurance costs depend on the pricing tiers of the insurers and driver’s overall profile. It’s complicated to provide a personalized quote of your insurance without knowing a driver’s credit score, history, age and some other details.

Insurance experts calculated the amount of a typical driver would pay for a 6-month car insurance policy from some popular and competitive insurance companies.

Insurance companyAverage 6-month Premium
Nationwide$636
Allstate$951
Farmers$618
GEICO$545
Liberty Mutual$751
Progressive$896
USAA$483
State Farm$884

The cheapest 6-month car insurance policy premiums are marked from USAA. 

A 6-month car insurance USAA policy will set you back on $483, or around some $80 per month. 

In case you do not qualify for the services of USAA, GEICO could be another affordable option. GEICO charges an average of $545 per 6-month car insurance policy period. What it means is that it costs approximately $90 per month.

Why should I get 6-month car insurance?

It has frequent rate recalculations

Depending on your insurance rates and driving record you can get a recalculated insurance rate that generally could save you some money. 

While pricing varies by circumstances and state, many insurance companies will charge you for up to even three years if you have a car accident or a driving infraction.

If a violation is set to expire halfway through your insurance policy, many insurance companies don’t readjust your rate until the insurance policy period has passed or unless you specifically ask the company. 

In this situation, a shorter 6-month car insurance policy will delete any infractions from your record more quickly.

Aside from a collision or a ticket, there are some factors that insurers may not adjust. An improved credit score or a birthday can dramatically lower your premium significantly. But most of the time these adjustments typically are not applied until your insurance policy is renewed.

A 6-month car insurance policy gives more flexibility

A shorter policy term gives you more flexibility with your insurance company. If you’re unhappy with the service of your company but you also don’t want to cancel mid-policy, you can just don’t renew it at the end of your policy term and look for another company. 

If you were previously without insurance. Most insurers offer interesting discounts for drivers who keep an insurance policy for just 6-months. 

Once your first 6-month car insurance period is over, you can find more affordable car insurance quotes and it should be easier because of your recent insurance history.

12-month policies are less common than 6-month car insurance policies, your current insurance company may provide them. Consider a few details before agreeing to a 12-month policy.

Why do the car insurance policies just cover you over six months long?

This situation could be familiar to you. The moment of hesitation when you discover your car insurance rate for the very first time. You hope to hear a number. Just wait and wait and then the voice of the operator says it… $520,58. 

You stop. You were expecting to hear a fair amount, something like seventy dollars a month, or a thousand dollars per each year. 

But $520,58? Now you remember that this is the rate for a 6-month car insurance policy. And then this amount makes sense to you.

So why are most car insurance policies only six months?

At first it can seem easier to part with $520 than $1000, the shortening of the insurance policy length is not only for the benefit of the consumer. 

Car insurance carriers want shorter term lengths to in this way re-examine the cost of your insurance policy. Car insurance means that is the transference of risk from the driver to the company. 

On the other hand, by paying your $520.58 in premiums costs in 6-months you are transferring the risk of any damages caused by any accident while driving to the insurance company.

Based on your personal profile, the insurance company will calculate the rate of risk and they accept if they can deal with that risk. 

But as profiles and people change. Maybe during the first couple of months of your insurance policy you’ve had a series of accidents; the company wants the flexibility to raise your risk rates without having to wait out the full year. Hence the 6-month policy.

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