Are Six-Month Car Insurance Policies Right For You?

If you’re currently shopping for car insurance, you may have come across carriers offering six-month policies in addition to twelve month insurance policies. While twelve-months or annual policies are typically the standard duration, certain carriers will occasionally have shorter-term policies as an option. 

Now, this type of policy is not available everywhere - for example, the majority of insurance carriers in Massachusetts don’t offer this type of coverage. It is important to note that Berry Insurance does not write short-term policies for clients, regardless of their state - meaning if you choose to work with us you would have to opt for an annual policy. 

However, in the spirit of education, we wanted to discuss the differences between six and twelve-month auto insurance policies - so you can decide which option is best for you if you live in an area with carriers that offer this policy duration. 

What are six-month auto policies? 

Six-month auto insurance policies are exactly what they sound like - auto policies that provide coverage on the road and renew after half a year. Some insurance providers will offer this alongside twelfth-month policies, that instead renew only once a year. 

This policy duration is not offered in every state or by every carrier, so be sure to check with your insurance agent or provider if it is something you’re looking for. 

What do six-month auto policies offer? 

Six-month policies will provide all the standard required coverages of a typical auto insurance policy in your state - meaning you likely won’t be missing out on any coverage when compared to an annual policy. 

What are the pros and cons of six-month auto policies? 

When it comes to deciding whether or not having a six-month auto insurance policy is right for you, it’s important to weigh the strengths and potential weaknesses of the short term policy. 

Pros: 

Shortened policies such as this may be desirable for the greater flexibility they can provide policyholders. If you don’t want to commit to a carrier for an entire year, or have found better coverage options elsewhere, having a shorter six-month policy means you wouldn’t have to wait as long for your policy renewal period. 

Many carriers will offer discounts for customers who pay for their car insurance policy in full upfront, rather than paying through more manageable monthly payments. Since the policy would be shorter than the year long policies, you may have an easier time paying in full and be able to benefit from added discounts. Of course, what discounts and benefits that are available to you will vary between carriers, making it important to check their own individual requirements. 

Also, with quicker renewal periods every six months, you can have your policy re-evaluated more frequently. Some policyholders, especially those with a history of claims, may benefit from more frequent renewals - as surcharges could be dropped as older tickets and accidents drop off from your driving record. 

Cons:

Even with the potential strengths listed above, six-month auto policies are not recommended for everyone for a couple of reasons. 

Firstly, while having multiple renewal periods a year may be beneficial for some - it could be potentially costly. With two renewal dates per year, it can be easier to miss or forget to pay and cause a lapse of coverage - leading to potential cancellation. 

Additionally, missing payments or having a lapse in coverage could negatively impact your insurance history, making it more difficult to be approved for coverage in the future. While setting up auto pay to handle your policy payments is useful, it isn’t always foolproof, meaning you should double check that each payment goes through properly to avoid any potential snags. 

Having more frequent renewals also means additional premium recalculations, meaning your premium could fluctuate throughout the year based on your driving history - either increasing or decreasing in cost. Opting for twelve-month coverage instead can provide you with more consistent premiums. 

Many carriers will also offer discounts for policyholders who opt for twelve-month policies, which can be a good way to save money on your policy. Choosing six-month policies instead would bar you from these savings.

Are six-month policies cheaper than twelve-month policies?

Policy length will not typically impact the overall rates you receive for your car insurance. However, it may dictate what discounts or benefits you’re eligible for depending on the carrier. Additionally, the increased number of renewal periods in a six-month policy could cause an increase or decrease in your rates when your policy is re-evaluated. 

Since every auto insurance policy is unique, how much you will need to pay for your policy will vary greatly depending on factors such as driving record, location, how much you drive, and more. To learn about everything that goes into determining your car insurance rates, check out this informative guide: How Much Does MA Car Insurance Cost?

Knowing which policy is right for you

Now that you know more about what six-month auto policies have to offer, you can weigh if it is the right type of policy length for you. 

We know that a lot goes into selecting your perfect policy, and how overwhelming it can seem to keep track of everything you need to provide to apply for coverage. While we don’t write short-term policies, you may want to know more about what goes into getting an insurance quote. For a step-by-step guide, check out this article: What Information do I Need for a Personal Insurance Quote?