Purchase Car Insurance Policy 6 or 12 Months - It seems like a decision is easy to make but for some reason you're really not sure. You are left asking what are the benefits and weaknesses of each length of the policy? Insurance agents are often asked what the best option and the truth depends on several factors. There are advantages and disadvantages of each policy timeframe. Let's look deeper into this and analyze both options, so you can make more informed decisions and save some money as well.
Benefits of Buying a 12 Month Car Policy
* Your Premium Price is set
This may seem obvious, but you may have ignored this simple thing. Prices almost everything from new cars and homes to shoes seem to keep going up. This also applies to car insurance rates. With more and more people having uninterrupted driving accidents and increased insurance fraud, many insurance companies have no choice but to raise their premium rates annually. The good news is you can lock the set rate for a year by buying a 12-month policy. If on the other hand you buy a 6 month policy, there is a very real possibility when it arrives to update it, you might see an interest rate increase for the same coverage. Another big plus to getting a long-term policy is you do not have to worry about it for a whole year, which takes away a bit of pressure and makes your budget bills easier.
* You can save by paying 12 months of coverage in advance
Almost every insurance provider offers a discount for a customer who pre-pays for one year of coverage. The reason why insurance companies provide a price gap by paying upfront is because they can invest the money and start planting it immediately. Insurers make the most of their profits from investing the premium income they receive into investments such as stocks and bonds. If they can get the entire amount paid in advance, they can put the money in to work and benefit from it.
* Having only 1 Annual Bill is more Comfortable
It seems to live more and more complicated all the time. What play on words that eliminates extra stress is a big plus. This includes reducing the number and frequency of bills such as car insurance. Having a 12 month pre paid policy will make your life a little easier. You do not have to worry about choosing another insurance plan or paying the bill again for a whole year.
* You can Stop the additional fees promised by many insurance companies against short-term policies
Many people can not afford the entire cost of car insurance in advance and need to break it up into monthly payments. Most insurance companies have options such as automatic payments that will charge someone's credit card on a certain date or even draft a payment from a bank account. The drawback is, there are often costs that must be made to make a monthly premium payment that really can increase. Try to buy a year of coverage up front and you will not only get a discount, but avoid the cost as well.
Advantages to Buy Car Insurance Policy 6 months
* You can get a lower Rate later
It is true that the cost of car insurance rises consistently but it is still possible to find a lot and lower your insurance costs. If you do not like being locked in long-term annual commitments, a 6-month policy might be right for you. With direct on-the-web rates, you have a good chance of getting cheaper coverage when your 6-month short term policy expires.
* It's Lacking Financial Commitment
If you have a tight budget but have enough money to buy a full 6-month policy, then this shorter term might be better for you. You may still get a small discount to pay in full and do not need to make extra money with a 12-month policy fee.
* Tickets can be removed from your driving record in less than 6 months
Do you have a serious driving violation on your DMV record that will be removed soon? If so, you may want to get a shorter 6 month policy. This makes sense because once the offense is removed from your records, you can apply for coverage and most likely get a cheaper price. If you have cleared your driving record within a period of 6 months then applied for coverage again and you should really be able to lower interest rates a bit.
Conclusion
If you are a good and responsible driver and have some money saved, it makes sense to buy 12 months of coverage first. However, if circumstances such as driving that will take place within 6 months or less, allow you to earn a lower rate in the future, you should not lock yourself in a 12 month long policy. Get a shorter 6-month policy and then apply again for a lower rate if this applies to you. Whichever policy you choose, always try and pay first in full so you can take advantage of discounts.
Go online and compare quotes from good to go insurance and see how easy it is to shop to get car insurance directly. Shop around and look for a good car provider to go insurance that offers at least a 5% discount for pre-paid full policy amount in advance.