Comparing Auto Policy Options: 6 Months vs. 1 Year – Which Is Better?

Consumers have more options than ever when it comes to auto insurance. One of the 2021 auto insurance policy options is the term of the policy. The most common terms offered by insurance companies are six months and one year. Of course, 6 months vs. 1 year auto policy costs differ. This leaves consumers wondering which is their best option. Here’s what you need to know.

1-Year Pros and Cons

If you have the option available to you, a one-year auto policy may be a better option. This is typically true for drivers who have a clean driving record. The one-year term locks in your rate for 12 months. You may also receive a discount for paying the annual premium upfront. This also eliminates the stress of frequent payments.

Because auto insurance costs tend to increase over time, a 12-month policy may provide security for a constant rate for one year. However, you might miss out on rate reductions that could have happened at mid-year with a six-month policy.

6-Month Pros and Cons

A six-month policy might be to your advantage if you have a less-than-perfect driving record. If you have points on your license or a moving violation, these can increase your insurance premium. However, once your record clears, you may be able to obtain a lower premium, so you won’t want the rate to be locked in for a full year. If your infraction is due to expire within six months, you probably want to choose the shorter term and seek a rate reduction for the next renewal period.

Another important consideration with 6 months vs. 1 year auto policy costs is your credit score. Insurance companies use your credit score to help determine your premium. If you are paying down debt or will be paying off a large debt soon, you may want the shorter term so your rate can be adjusted sooner.

Specifically, if you will be paying off your car, you may have more 2021 auto insurance policy options. Lenders often require comprehensive and collision on cars that are financed. Once you pay off the automobile, you may want to reduce the amount of coverage you carry on the car, which will lower your premium.

Potential Savings

Either of these 2021 auto insurance policy options can provide the coverage you need. However, keep in mind that whether you choose a six-month or one-year policy, you should always pay in full up front. This will allow you to save money on processing fees. These fees are typically minimal, but they can add up over time.

Get the Best Coverage at the Best Rates

As you compare 2021 auto insurance policy options, consider the benefits of partnering with Affordable Car Insurance Tampa. We are the area’s go-to source for quality, affordable auto insurance. Do you have 10 minutes? We can get you a quote. Contact us today to see how we can help you get the best coverage at the best rates. Reach our experienced team at 813-328-1985.