Buying a 6 or 12 Month Auto Insurance Policy

6 or 12 month auto insurance
So you did your research and found the perfect auto insurance plan. You are just about ready to buy it but pause before you make a final decision. You aren’t exactly sure whether you should be buying a 6 or 12 month auto insurance policy. You ask yourself, what are the pros and cons to each option and does It really matter?  This is actually a really common question that insurance advisors get asked all the time. There are advantages to each and some drawbacks. Lets dig deeper into this common dilemma and see what option best fits you.

Benefits of Getting a 12 Month Automobile Policy

*  Your Rates are locked in Place
It seems by the week prices on almost everything are going up. Car Insurance is no exception to the grasp of inflation. With this in mind, you might want to lock in a price for your policy if you think you are getting a really good deal. In recent years, automobile ins rates have increased over $100 on average some years. Think about it for a second. If you just bought a 6 month policy, there is a good chance that insurers will hike up rates, leaving you with an increased insurance bill. If you can afford it, paying for an entire 12 months of coverage in most cases will save you money.

*  You can get Discounts for Paying upfront for a Years Coverage
Most insurers have discounts available for customers that pay their premiums upfront for an entire year. This way the ins companies can be certain of payment and take the money and invest it. After all, insurers make hefty investment returns from the proceeds of each policy. They want as much money upfront so they can invest it and get a higher return on capital. A common discount for paying in advance for a 12 month policy is between 3% and 5%.

*  Added Convenience with only 1 Annual Bill
Today, we are seemingly more busy than ever. The more bills we can eliminate the more stress we alleviate too. When you buy a 12 month plan, you cut down on an extra bill mid way through the year, which makes your life just a little bit easier.

*  You can Avoid extra fees most insurers Impose by paying your Yearly Insurance bill in full  
Often times when you structure your insurance bill in payments you will be charged a processing fee. This could amount to over $100 or more over the course of the year if you are set-up to make monthly payments. Eliminate these needless charges by getting a twelve month plan that you pre-pay.

*  You can Eliminate Possible Rate Increases due to Traffic Citations
If you buy a 6 month policy and then get hit with a major traffic infraction like reckless driving, your rates could soar after the end of the six months. It’s more advantageous to lock in your rate for a full year and not worry about any increases, which you might not be able to afford if you’re on a super tight budget.

Advantages to Buying a 6 month Policy

*  You might find a Better Rate
Although insurance costs have risen nearly every year, there are deals out there for those who shop around and can find a good deal or special promotions. If you feel like you might be able to get a better car insurance deal in a few months, then you should get a shorter policy and leave that window open.

*  Less Money Upfront
If you don’t have much money and cannot really afford twelve month of premiums upfront, consider getting a 6 month policy and pay it in full. While it might be a bit more expensive, you might find a better price when it expires midway through the year anyway.

*  If a Driving Infraction will be taken off your record in the next few Months
If there’s a serious infraction that is keeping your insurance bill sky high that will be taken off your record soon, it might be smarter to get a shorter policy. When it is removed, you can probably get much cheaper automobile insurance and at that point get 12 months of coverage. Shop online now with good to go insurance company. The quote is totally free and there is never any obligation to buy whatsoever.


If you are a safe driver with an overall good driving record, it makes sense to buy a 12 month automobile ins policy. However, the exception to this rule is of you are getting out of a serious infraction soon that could dramatically lower your cost, which makes getting a 6 month plan the better choice. Whatever you choose, make sure to pay the premium in full so you can qualify for a discount and save on processing fees. Let good to go auto insurance help you get a better insurance price today. Go online now and compare rates from top providers in about five minutes.