Can I do a partial payment for Ocean Harbor car insurance?

Purchasing a 12-month car insurance policy is better than purchasing a 6-month car insurance policy if you’re a good driver with a clean driving record and the option is available to you. Six-month car insurance might be best if you have a moving violation or a few points on your license that will expire soon. The main benefit of a 12-month policy is that it locks in your rate for a year. Plus, if you pay your annual premium upfront, you can qualify for a discount and eliminate the hassle of more frequent due dates.… read full answer

Some insurance companies still offer annual policy terms, along with a 6-month option, including Liberty Mutual, USAA, Erie, The Hartford, The General, Infinity, Safeco, and Unique. But it is becoming less common for insurance companies to offer 12-month terms because reviewing and adjusting rates more often is better for business. That’s why insurers default to 6-month policies and why most insurance-premium quotes assume a 6-month term.

Insurance companies revise rates at the end of a policy term. They largely consider changes to your driving record and claims history during that period. But even if your driving record and insurance profile have not changed, your rate can still go up. That’s because insurance companies regularly adjust rates for all consumers to account for pricing miscalculations and unexpected claims.

6-Month vs. 12-Month Car Insurance Policies

A 12-month car insurance policy tends to be more secure, given that car insurance rates overall usually go up over time. But that doesn’t necessarily mean you’re getting the best value. You still need to compare multiple companies for both 6- and 12-month policies to know you’ve found the best deal.

Six-month policies have some perks of their own, after all. More frequent policy renewals could potentially benefit drivers with less-than-perfect driving records who’ve since changed their ways. If you can keep your driving record clean and have a previous infraction due to expire in the next six months, your rates could go down.

A 6-month car insurance policy might also benefit drivers who will soon pay off a car loan as well as those who improve their credit. Car insurance companies use information from your credit report to calculate your rate, and the less debt you owe according to your report, the better it is for your credit standing. In addition, many lenders require extra coverage when you finance a car, such as comprehensive and collision. If you no longer want to keep as much coverage as the lender required, scaling back could lower the cost of your premium.

Whether you choose a 6-month or 12-month car insurance policy, it’s always better to pay in full. When you make monthly payments, you’ll probably be charged slightly more on your premiums and may also be subject to additional payment processing fees if you pay electronically. Even if these are only a couple of bucks a month, they can really add up over the term.

Month-to-month car insurance is not offered by any reputable insurance company. Month-to-month insurance typically refers to an auto policy that provides coverage for one month at a time, not a six or 12-month policy that is paid for in monthly installments. But because truly temporary car insurance doesn’t exist, standard policies with monthly premiums are actually a more realistic form of month-to-month insurance.… read full answer

Why Insurers Do Not Offer Month-to-Month Car Insurance

Month-to-month car insurance is not available from any reputable insurer because of the potential losses that come with it. Drivers who need short-term insurance are considered to be high-risk, meaning they’re more likely to file a claim than those with standard insurance.

In addition, drivers in this demographic likely won’t become long-term customers, and insurance companies won’t be able to recoup the cost of a claim from a one-month premium.

When Month-to-Month Car Insurance Would Be Useful

• You are temporarily driving an insured car but want coverage to supplement the owner’s insurance.
• You plan to frequently drive rental cars within the next few months and don’t want to pay high fees for rental car insurance.
• You are purchasing a car for a short period of time.
• You are a seasonal employee and your work requires you to drive.
• You want to drive for a rideshare service but don’t own a car yet.

Alternatives to Month-to-Month Car Insurance

Usage-Based Insurance

Usage-based insurance, or pay-per-mile coverage, is a great option for drivers who will only need car insurance for a few months. Insurers like Metromile charge a base rate for coverage, then determine additional costs based on how many miles you drive. Additionally, some standard insurers like National General offer usage-based discounts to policyholders who only drive a few thousand miles annually.

Non-Owner Car Insurance

A non-owner policy covers you when you’re driving any car that you don’t own, and since it does not apply to a specific vehicle, it’s an affordable alternative to standard car insurance. However, it’s important to know that you cannot purchase non-owner insurance if you own a car or live with someone who does.

Paying Your Car Insurance Monthly

If you think you’ll only need a car insurance policy for a few months, you can purchase a standard six or 12-month policy and pay monthly instead of in-full upfront. Once you no longer need the policy, you can cancel it. You should receive a refund for any unused policy time that you already paid for, but keep in mind that your insurer may charge a cancellation fee.

For drivers who choose to go this route, the monthly cost of coverage depends heavily on which state they live in.

Average Monthly Car Insurance Cost by State