Auto Insurance Coverage

How 6-Month and 12-Month Auto Insurance Policies Differ


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Just like any other commodity, selecting auto insurance policies can amount to personal preference. Whereas one car owner may opt for a 6-month car insurance policy, another may desire a 12-month policy. There are advantages and disadvantages to both depending on what any particular car owner may require. By looking at some of the differences between the two types of policies, car owners can better determine which of the two best fits their auto coverage requirements.

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Major Difference in the Quote Comparison

It is probably no surprise that the major difference between a 6-month and 12-month car insurance policy is in the premiums. Simply, you will pay a larger premium for a 12-month car insurance policy. Depending on a car owner’s budget, this can be the determining factor in which policy is ultimately purchased. Within this however there are a couple of considerations.

First, while a 12-month policy has a larger premium to be paid; that premium will not change or fluctuate for the length of the policy, which is at least 1 year (which means no repeated paperwork as well). With a 6-month policy, car owners may have to deal with increasingly higher premium rates over a shorter period of time.

Also there are the fees to consider. It is best to pay for the term of your coverage in full whether it is a 6-month or a 12-month policy. However, if you decide to pay in monthly installments, you will probably be assessed a fee that represents a fraction of the premium of the coverage. Naturally, for a 12-month policy that is paid on a monthly basis, a larger fee will be paid than with a 6-month policy.

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Additionally, there are many insurance providers that offer car owners a discounted rate for 12-month policies over 6-month policies. This makes sense for the insurance providers as they lock customers in for a longer period of time at a higher rate. For the car owner, the discount will amount to a certain degree of savings that makes the higher premium more attractive.

A 12-month policy is typically more convenient as well. With a 6-month policy, car owners will need to renew their coverage every few months. This can be a hassle and easy to forget for some car owners. A 12-month policy affords car owners the luxury of not having to concern themselves with the renewal process for at least a year.

Choosing between a 6-month policy and 12-month policy can be a difficult decision. The pros and cons can outweigh each other. Depending on your situation you may want to lock in your rates for an entire year or opt for short term car insurance. Take a look at your needs and budget and you will be able to make the decision that is best for you and your family.

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