A six-month car insurance policy refers to the specific duration the insurance coverage policy is active. Typically, insurance companies offer these policies for six months, after which policyholders can renew their coverage. These policies are called short-term or temporary policies. Their terms can be misleading, as most leading auto insurance companies don’t offer short-term options. That said, customers can seek out affordable six-month car insurance plans, allowing them coverage with easy cancellation options.
Average costs of a six-month car insurance policy
The six-month car insurance typically costs around $435 for a minimum coverage requirement. However, the cost is $1341 for complete, long-term coverage. While this is the average pricing, the actual cost depends on different factors, such as the policy seeker’s driving profile, the provider chosen, the coverage, the type or model of vehicle, and the location.
Factors affecting the cost of six-month car insurance
The cost of car insurance depends on several variables, regardless of whether it is needed for a standard term or six months. These factors influence the amount the policyholder will pay for car insurance.
Age
Auto insurance rates tend to be steep for young drivers, especially teens, because of the increased risk of accident involvement. As individuals age and gain more driving experience, these rates typically decrease. It is important to note that once a person reaches their mid-60s, insurance premiums often start to climb again, possibly reflecting a renewed risk associated with age-related factors.
Driving record
At-fault accidents and traffic violations on the driving record lead to a higher premium. People with a clean driving record can usually grab a low premium rate policy.
Credit score
A low credit score often results in a high premium rate unless the policyholder comes from a state that does not factor in the credit score when determining the auto premium price.
Marital status
The premium amount is usually lower for married policyholders than for single individuals.
Deductibles
The policy deductible is the amount paid out of pocket for some types of claims. When the deductible is lower, the premium amount is higher.
Fees
Those considering a short-term policy should also account for a cancellation fee or similar cost in the total expense.
Location
Rates usually vary between states and within states, depending on local risk factors such as traffic patterns, natural disaster zones, and cities with high car crashes and theft rates.
Benefits of a six-month auto insurance policy
Frequent evaluation of driving activity
Generally, speeding tickets and accidents can affect driving records. The surge may not be applied on the policy after three to five years. So, with every policy renewal, the service provider may waive any surcharges that are not applied.
Discounts on full payment
Some insurance providers offer multiple discounts to those who pay their full premiums instead of paying monthly payments. This option is available for six-month or one-year policies, making it beneficial for the insurers. Those who cannot pay in full in a 12-month policy can opt to pay in full by choosing the cheap 6-month car insurance policy.
Flexible
Most insurance providers levy a cancellation fee if customers want to switch to another auto provider before the maturity date. However, with a six-month policy in hand, customers may not have to wait for renewal for an extended period if they are unhappy with the service.
Companies with cheap 6-month car insurance policies
State Farm
This is one of the many prominent insurance companies that do not levy a cancellation fee. So, interested customers can buy coverage for as long as they need and cancel it without shelling out an extra penny. In addition, State Farm offers significant discounts for students away at school who do not take their cars along. This means that policyholders can get a policy for the full term while still paying a lower sum.
- Average annual six-month minimum-coverage quote – $431
- Average annual six-month full-coverage quote – $1272
USAA
This is another insurer that does not levy a cancellation fee, making it perfect for those seeking short-term coverage. However, USAA offers auto insurance only to veterans, military members, and their spouses and children. Eligible people can find cheap six-month car insurance options with USAA.
In addition to offering some of the most lucrative rates in the country, the company also offers various discounts. Most of these are for military members, including storing the vehicle on the base while the personnel is deployed.
- Average annual six-month minimum-coverage quote – $236
- Average annual six-month full-coverage quote – $871
Geico
The next option for a short-term car insurance policy is Geico. This insurance provider offers a range of coverage, including collision, roadside assistance, mechanical breakdown, and rental reimbursement. In addition, the company also offers discounts to customers who pay their full amounts instead of installments, minimizing the risk of late payments and defaults. Also, if customers add multiple cars to the policy, the rates decrease using multiple-vehicle discounts. Customers can also use the insurance calculator to find an average rate cost and other details.
- Average annual six-month minimum-coverage quote – $310
- Average annual six-month full-coverage quote – $997
Allstate
With Allstate, customers can also get six-month policies at affordable rates. They do not levy a cancellation fee and offer a range of discounts to help customers save more.
- Average annual six-month minimum-coverage quote – $597
- Average annual six-month full-coverage quote – $1670