Does a 6 month car insurance policy only last for 6 months?

Question

hello,

I am getting ready to purchase an insurance policy and it says that it's a 6-month policy. This sounds a bit absurd, i realize that, but my question is whether or not the policy is only good for 6 months or does it last for a year, but you're only financially obligated to pay for 6 months? If the answer is that a 6-month policy only lasts for 6 months, then okay. I know to those who know the answer, this may seem absurdly easy, but I just wanted some clarification.

Thank you.

Answer 1

No, it's a 12 month policy but they review every 6 months.
Your premium is for 6 months.
So if it is $1,000.00 for six months, then you are going to pay $2,000.00 for a year.
They just break it up so that if you are a high liability, then they can cancel you.

Answer 2

Lets be clear on this! It's a six month policy because it says it's a SIX MONTH POLICY. The reason it is for six months is because the Banking and Insurance laws tell the insurance company's that they must offer you a policy for six months minimum so they do. Typically in most cases you will be permitted to renew your policy after six months and continue to "roll" the policy as long as you want to.

However, every time you renew, it's a new policy. So, if the company decides to change the rates, or if the company decides to exclude certain things they will not cover or if the company decides to put you into a different rate class, then by paying your premium you agree to it.

Also, the company has the option of dropping you as a customer after six months if for some reason they no longer desire you (most likely the office that signed you up) to be a customer.

I hope this explains insurance policy's a little better.

Doctor K

Answer 3

"Statewide increase" does not mean that they are blaming the state. It means that they are increasing the amount that they are charging everyone in the state. If you keep the same insurance company for several years, then you get a discount. When they say the increase is due to "not having consecutive insurance", that is somewhat misleading. If you had consecutive insurance, there would still be an increase, but you would pay less, because of the discount for having consecutive insurance. The other thing that I think is happening is that you are getting tricked by "teaser" rates. The real price that they charge is $140-$160. You will have to pay that much with any company, because that is what they charge. That is not an "increase". The $85-$90 that they charge for the first 6 months is a new customer discount, to get you to switch. It is not the real price, and you should not expect to be able to keep paying it for very long. This is like when something is on sale at the store. When the sale ends, the price goes back to the regular price. That is not a price increase; it is just the end of the temporary price reduction. $85-$90 is the sale price. $140-$160 is the regular price.

Answer 4

Some states have different rules about auto insurance policies. Some insurance companies have different rules about how long their policies are valid. Your age, gender, and years of being a licensed driver will all have an effect on the cost of car insurance. The biggest factor is, however, the type and value of the vehicle you want to insure. Insurance companies will base their premiums on these factors plus the number of claims that you may have made over the past 3 - 5 years. They want low risk, accident free new clients.

Answer 5

Some insurance companies write 6 month policies. I used to be with Allstate in Ontario, but they switched from 1 year policies to 6 month policies so they could adjust your rates more often, they claimed it was so you didn't see such a huge increase every year. I though it was so they could screw me twice as fast. Some companies (Chieftan) issue "monthly" policies, where they can adjust your rates on a monthly basis, and you have to charge it to a credit card.

Answer 6

Simple,
It is a 6 month policy plus a few days gray period to do 2 thinks:
a) You can finish the policy or paid the balance ( Other 6 Month).
b) You can change insurance company.
One think you can not do is to be with no insurance, they will report you to the DMV. and you know what comes next.

Answer 7

That's it. They will send a renwal notice at some point near the end of the six months to pay for the next six. It will have the exact expiration date of your current policy.

Answer 8

6 month policy equals 6 months... easy as that

Answer 9

No, it lasts for six months, and then they can raise the rates again. Progressive in particular, really likes those six month policies.

Answer 10

I recommend you to visit this web page where you can get rates from different companies: http://INSURANCECOMPAREQUOTES.US/index.html?src=5YAttzxiSQ321

RE :Does a 6 month car insurance policy only last for 6 months?
hello,

I am getting ready to purchase an insurance policy and it says that it's a 6-month policy. This sounds a bit absurd, i realize that, but my question is whether or not the policy is only good for 6 months or does it last for a year, but you're only financially obligated to pay for 6 months? If the answer is that a 6-month policy only lasts for 6 months, then okay. I know to those who know the answer, this may seem absurdly easy, but I just wanted some clarification.

Thank you.
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