As you review your auto insurance quotes, you may notice that some insurers offer six-month or 12-month durations. Each policy length may offer certain advantages and disadvantages.
For example, six-month policies may give you more flexibility and discounts, but their premium may increase more often. 12-month policies may let you lock your premium for longer, but they aren’t as easy to find and may reduce your policy flexibility.
So, which one should you choose? Let’s explore the main similarities and differences to help you decide.
Six months vs. 12-month car insurance policies
Six-month and 12-month policies have many things in common while allowing customers to choose payment terms that work best for them. Although there is likely no wrong answer to the policy term you pick, being strategic about the available options can help you make the most out of your insurance dollars.
What is a six-month car insurance policy?
A six-month car insurance policy is a policy that provides coverage for six months as long as you pay your premium. You can choose to renew or find other coverage without penalty six months after starting the policy.
Having a six-month policy means that if you need to change your coverage, end your policy, or search for a better rate, you can do so twice a year. Because you can make changes twice a year, you have two opportunities to avoid cancellation or change fees for any coverage you need to add or remove from your policy.
Keep in mind
Six-month auto policies are standard for most insurance companies. You may find it challenging to find insurers that offer shorter or longer terms.
Each time your auto insurance policy expires and renews, the insurance company reviews your policy premium