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Should I buy a 12 month auto insurance policy or a 6 month auto insurance policy, Insurance Center, 12 month auto insurance policy.

Should I buy a 12 month auto insurance policy or a 6 month auto insurance policy, Insurance Center, 12 month auto insurance policy.

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Should I buy a 12 month auto insurance policy or a 6 month auto insurance policy?

We have been asked many, many (many) times if there are substantial benefits to purchasing a 12 month auto insurance policy at once -vs- a 6 month policy. There can be certain advantages for each policy in either 6 month or 12 month increments as car insurance rates can change depending on several different factors, including time, so let s get to the bottom of this right here!

  • Your insurance rate will be locked in and cannot change (in 2013, car insurance rates increased nationwide by $153*)
  • One single bill for the entire year
  • You will not forget to pay mid-way through the year
  • If you receive an infraction mid-way through the 12 month period, your rate won t change during that time period. It may if you were paying every 6 months
  • By paying all at once, you will likely avoid processing fees that your insurer must pay when charging your credit card 1x/month (that s 12 separate transactions they have to run every year vs. just one).
  • If you had an infraction that is due to be taken off your record within a year, your second 6-month premium may be less than the first 6-month premium
  • Provides an opportunity to evaluate your car insurance needs. Perhaps you can find a lower rate from another provider during those first 6 months
  • If you don t have all of the money for a full year s premium, splitting it up into a payment every 6 months is, well better!
  • Again, if you pay only twice a year, you will likely avoid processing fees that your insurer must pay when charging your credit card 1x/month
  • Least amount of money out of pocket for each pay period e.g., $120 month vs $1200 all at once for 12 months (but it will cost more over the policy term)
  • It may be easier to switch auto insurance companies if you re paying monthly instead of waiting for a refund on what remains on your 6 month or 12 month payment

From our vantage point, if you re a good driver and don t have any infractions, we think it s wise to buy a 12 month policy. On the other hand, if your driving record is due to become clean within 6 months, we recommend you buy a 6-month policy and evaluate your options after your driving record is normal again.

No matter your personal decision, our vote is to avoid the monthly fees and pay the 6 month or 12 months premium up front. You ll be glad when you re not getting charged a processing fee that adds up over time. For more information about auto insurance and home insurance rates, give us a call at 1-800-258-5101

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Should I buy a 12 month auto insurance policy or a 6 month auto insurance policy, Insurance Center, 12 month auto insurance policy.

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Written by FRANCE


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