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Why Car Insurance Policies Are For 6 Months

Car insurance policies may seem limitless in their coverage options, but their lifespan isn’t quite as vast. Most auto policies are active for six months. This is mainly so that the insurance providers can make their rates more competitive. After the six months are over, your provider takes the time to make any changes to your insurance, such as rate increases after a claim or additional coverage limits. During this time, the policy can also be renewed by the policyholder.

During renewal, you can lower your rates if you were a high-risk driver with many driving infractions, fines, or accidents in the past. You’ll be able to decrease your rates if enough time has passed by an assessment on a short-term basis. Also, because you have less time to spend on the process, it’s more difficult for them to obtain a settlement. As a result, they’ll be able to lower your premium so that you don’t switch over to another insurance provider who does not take the offense into account.

Car insurance costs can depend on a variety of factors including age, marital status, driving history, and more. So naturally, safer, older drivers will usually have the lowest rates. This six-month period exists in case there are any changes to those rates.

Consumers are generally unaware that there are different alternatives to the typical six months of vehicle insurance, although depending on the insurance provider, you may discover they provide shorter or longer terms. If you plan on traveling only a short distance, month-to-month or a three-month policy is the way to go.

If you’ve compared rates and found that your vehicle insurance is the most competitive for your profile, ask if they offer a one-year policy. Other people will see your good standing, and you may even save more because you’re committing to longer-term and they’re confident in your driving. If you want to make sure that you’re saving the most money while still getting the best car insurance, pay your premium in full. When you break out your payments into monthly installments, insurance companies impose a “convenience” or “installment” fee (the more spread out the payments, the higher the fees). If you can’t pay everything at once, see if enrolling in auto-pay will waive the fees. Ask your insurance provider about their policy lengths today.

* Get cheap car insurance quotes today from Insurance Navy. The process takes only a few minutes and can be online or by phone at 888-949-6289. Prefer to speak with one of our agents in person? You can also stop in at one of our many locations for a free auto insurance quote.

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