When shopping around for auto insurance, you might be wondering what the best term length is. Locking yourself into a long-term policy may or may not be a good idea. It is likely that you’re going to get a cheaper price for a longer policy. However, you might get an even cheaper long-term policy if you first set up for a short-term six-month car insurance policy. Not all insurance companies offer six-month policy options, but there certainly are some that do.

Six-Month Car Insurance Cost

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Paying six months of car insurance, generally, is not going to be able to give you a cheaper insurance rate. Six-month policies are actually in place partially to benefit insurance companies. This is due to the risk factor of giving someone a twelve-month policy. Especially if you are a new driver, your insurance company doesn’t really know if you will make any claims or not. Signing you for a six-month policy allows them to be able to renegotiate your insurance cost six months down the road. At this point in time, your insurer will be able to tell if you are a reasonably safe driver and they will be more comfortable giving you a longer insurance policy.

Difference Between Six And 12-Month Car Insurance Policies

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There are several large differences between six and 12-month insurance policies. Generally, if you feel as though you are a safe driver and you have a clean record, you are likely going to want to go for a 12-month policy. However, if something is due to come off of your driving record within a six-month timeframe, you might want to go for a six-month policy. Once the six months is up and if you now have a clean driving record, then signing for a 12-month policy is likely the way to go. A 12-month policy is likely to give you the better car insurance rate over the long term.

Can You Get Car Insurance for Less Than Six Months?

Unfortunately, you’re going to have a pretty hard time being able to get insurance for less than six months. Most insurance providers are not willing to provide insurance coverage policies for less than six-month periods. There is one thing that you can do, however. You do have the right to cancel your insurance policy. If you look for an insurance company that has a low fee to cancel their insurance policy, this is a good way to get insurance for less than six months. Some companies certainly have larger fees than others. Some companies charge as much as a whole month worth of insurance just for canceling your insurance policy early. Doing your research beforehand and finding a company with low cancellation fees is probably your best bet.

How Do I Cancel My Car Insurance Policy?

The first step towards canceling your policy is to check to see what the cancellation fee is. Your insurance company is likely going to charge you this fee. Once you know what the fee is, you should contact the new insurance company. Make sure that you have coverage before leaving your other insurance company.  If you don’t, you won’t be able to drive. Your final step is to contact your insurance provider and tell them you want to cancel. At this point, if you have paid annually for your car insurance, they should send you the remainder of what you have paid. Keep in mind, if you have multiple products from the same insurance company, your discounts for switching insurance companies might disappear.

Payment Options For A Six-Month Policy

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One of the best reasons for a six-month policy is due to the payment options. Generally, insurance companies are willing to offer discounts to clients. Especially to those who are willing to pay for their insurance premium in full, upfront. Signing up for a six-month insurance policy and paying in full is a great way to get a discount. It is much cheaper than doing that for a 12-month policy. Although it might be cheaper overall to pay for a 12-month policy in full. If you pay upfront, it is much more of a financial hit to do this. There is really no major benefit of a six-month policy compared to a 12-month policy when paying over a monthly basis, which is something to keep in mind.

What Is a Temporary Permit for?

A temporary permit is a permit that allows you to drive for 10 days.Once the ten days are up, you must get a regular license sticker. A temporary license plate sticker is something that you stick onto your license plate to replace a regular license plate validation sticker. Once the 10 days are up, you must provide proof that your vehicle is safe to drive. This will allow you to be able to get a regular license plate validation sticker. To get proof, you should be able to visit almost any mechanic. They can validate that your car is safe to drive or tell you what you need to fix.

Pros of A Six-Month Car Insurance Policy

  • Time for driving infractions to come off of your record before going for a long-term policy
  • Save time shopping around at insurance companies
  • Be able to renegotiate your insurance premium after six months
  • No obligation to stick with that insurance company for more than a six-month period
  • When you know your driving circumstances are going to change shortly, which will change your insurance rates, a six-month policy is not a big deal
  • Easier to pay for a six-month policy in full to get a discount

Cons of A Six-Month Car Insurance Policy

  • When your insurance company is losing profit from other customers, they might try to squeeze more money out of you after six months
  • If you happen to get into an accident within the six-month span, your insurance premiums will rise for the rest of the year
  • If you just need temporary car insurance for less than six months, this is pretty much the minimum policy length you can find

To Conclude

A six-month car insurance policy is certainly not something that works for everyone. Depending on your circumstances, a six-month policy can increase your insurance rates or decrease them. Some insurance companies do not even offer six-month car insurance policies. Six-month policies are almost always the smallest policy term length that you can find for vehicle insurance. Smaller car insurance policies than that, just aren’t worth insurance companies time and money to set up. Always remember, if you want to get the best possible insurance rate, be sure to contact more than one car insurance company for quotes.

Resources:

https://coverhound.com/insurance-learning-center/why-are-most-car-insurance-policies-only-six-months-long
http://www.thetruthaboutinsurance.com/car-insurance-policy-terms-6-month-vs-12-month/
https://www.carsdirect.com/car-insurance/6-month-vs-12-month-car-insurance-policies
http://www.licensingoffice.com/DriverLicensing/TempraryLicence.html