No one likes to pay for car insurance but there is just no getting around it if you own a car. While it can be expensive, there are lots of ways to save money on your monthly premium payments. If you are strategic about the type of car you drive and keep a good, clean driving record you can save money.
But what if you have a couple of tickets or accidents that you can’t make disappear overnight? How can you save on car insurance beyond the usual methods of maximizing your discounts, maintaining a high deductible or lowering your coverage? One way may be to get a 12-month car insurance policy.
That’s right. Many insurance companies offer discounts if you pay for a full year of coverage all at once. Let’s find out more.
How Much Does 12-Month Car Insurance Cost?
Every car insurance company has its own method for calculating your rate. They each use their own criteria for setting the cost to you for insurance. When you begin to compare rates between companies, you may find companies that offer better rates for the longer term.
Some companies sell 12-month policies, but only in certain locations or if you fit a certain driver profile.
If you are having trouble seeing the savings in a 12-month quote, check for a break on the cost if you pay your policy premium in full. Paying the full amount in advance can save anywhere from 15% to 20% off of paying your premium in monthly installments.
Pros of a 12-Month Car Insurance Policy
One of the top advantages of a 12-month policy is that you will not see your rate rise every six months as your policy renews. Your rate is locked in for the year. There is no revisiting or rate revision to worry about.
Usually, insurance companies revisit rates when your policy is up for renewal. If their claims payouts are high, they will likely increase your rate (and everyone else’s) in order to boost company revenue. With a 12-month policy, you can avoid at least some of these revisions.
Cons of a 1-Month Car Insurance Policy
One of the top disadvantages of looking for a 12-month policy is that they are hard to find. Most major insurers do not offer 12-month policies. Standard for the insurance industry now is a 6-month policy. This helps the companies adjust rates more frequently. So, finding a 12-month policy will take some research.
Also, there is no guarantee that a 12-month policy is going to save you money. Your rate may be locked in for the full year but that doesn’t mean you are saving money. This is why it is so important to shop around.
By comparing rates from as many car insurance companies as possible, you can be sure you are getting the best rate for your situation. When you’re ready to start looking, InsuranceWins is here to help. Simply use our short form to start receiving auto insurance quotes from well-known insurance companies and start your saving now and for the next year!
