Jun 27 2011

Why are auto insurance policies only six-months in length?

Category: Auto Insurance


Auto InsuranceAuto insurance companies will typically create policies in 6-month intervals to lower their risk on an individual policy. These shorter policies give the auto insurance company the ability to re-evaluate each policy holder (every six months) to determine if rates should be raised or lowered. Longer policies (12 months or longer) will often warrant higher premiums because the insurance company is incurring a higher risk to insure the driver.

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