What Do You Know About 6-Month Auto Insurance Policies?
You are perhaps used to renewing your insurance policy annually without knowing that some insurers offer 6-month policies as an alternative. While it is mostly meant for high-risk drivers, insurance firms also use this kind of policy to attract clients by offering them good rates during the first six months.
Beneficial to high-risk drivers
This kind of policy can be favorable to high-risk drivers. Those aiming to improve their rates can try driving safely during the 6-month period, hence securing an improved rate in the following 6 months.
High-risk drivers have a chance of splitting the annual premium into two smaller affordable segments. A 6-month premium is more affordable than a full 12-month policy.
This 6-month policy is also beneficial to new drivers who intend to establish a good driving record that can favor them in the long run.
Benefits to Insurance firms
Although good drivers are not likely to incur any costs for the insurance firm in 6 months, there is a big probability that high-risk drivers will cause an accident during this period. This means that insurance companies enjoy a shorter period (six months) of adjusting the rates upwards for high-risk drivers who might get speeding tickets or causes an accident.
Save money with shorter policy covers
6-month policies are ideal for money savers since they can be in a position to shop around for the best available premium twice a year. Shopping around is a prudent way to save money on anything you purchase, so auto insurance should not be any different. 6-month cover lets you pick the best rates and be certain you are paying only what is mandatory for a car insurance.
Gain more financial flexibility
The bargaining power you gain with a 6-month policy is helpful especially if you run into a spell of financial problems. For instance, those who find themselves jobless in the winter may opt to only insure their vehicles in the summer, when the need of a car is necessary. 6-month policies simply offer drivers more financial options and flexibility.
Auto insurance firms can differ broadly in the policy particulars and in the premiums the drivers are supposed to pay. However, by using various quote comparison tools available on the internet, drivers are in a better position of picking the best insurers.