Car insurance is a monthly bill that can not be skipped without major issues. If you live in a state that requires auto insurance, you may find yourself with a letter and cancelled vehicle registration due to a lapse in insurance. Accidentally missing a car insurance payment can also mean legal trouble if you get into a wreck or if you get pulled over by a policeman. Insurance will typically offer the option to pay monthly, yearly, or every six months. Here is why going with the six-month option for auto coverage gives you more leverage.
Six months provides you with a bit of a bonus
Six-month payment options will provide you with a discount on your low-cost auto insurance. Whether you select full coverage or liability insurance, the monetary discount that you will receive for paying up for a six-month term could equal a month or more in coverage. Since you must pay insurance regardless, getting a discount for doing so is a smart financial move.
A lease or move can happen in the interim
A six-month auto payment gives you the best of both worlds in the event that you have to move in the middle of your insurance coverage term. First, you won't have to worry about the payment during your actual packing and moving. Second, once you are settled in and your coverage needs to be renewed, your area may actually decrease your insurance costs further, along with the six-month bonus. If your area is not better as far as lower insurance costs, you may still be able to negotiate the costs for another inexpensive six-month deal. A year-long insurance term would lock you in for longer, but a six month provides a good adjustment period in the event that you do make a move.
Time to prove yourself
If you have taken more risks than a racecar driver on the road, you know that insurance agencies may not look upon a risky record so kindly. If you select a six-month term for low-cost auto coverage, you will have the chance to take driving classes, decrease some of the points on your license, and pay off tickets. If poor credit is one of the reasons why you find yourself with higher than average coverage, a six-month term will give you a discount and time to clear up your credit issues. If your credit score is higher, you may find that your next six-month term will be even lower in cost than the first. If this is your first car and your first time getting auto coverage, a six-month term proves your ability to drive responsibly and makes the bulk payment easier to remember.