Having a six-month insurance premium means you're paying for insurance coverage that lasts for six months. Your insurance company will recalculate your premium after the six-month period is over. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. However, if you compare the price of your car insurance on a monthly basis, there might not be much difference between a six-month policy and a 12-month one.
A six-month auto insurance policy is renewed twice a year, while customers with annual car insurance can renew their policies every 12 months. However, you can usually buy a six- or 12-month policy and cancel it in the medium term if you no longer need coverage or if you've replaced your car insurance with another provider. Most insurers offer payment plans, which means you can choose to pay your car insurance premium in monthly or one-time installments. That might seem like an inconvenience, at least if you're not a good driver, but six-month car insurance policies can also work in your favor.
The good thing about having a 12-month term is that your car insurance rate will remain fixed for an entire year, so you'll know what to expect from month to month. Regardless of the length of the policy you choose, you should compare quotes from some of the best auto insurance companies on the market. The length of the policies is specific to each company; some companies can only offer car insurance for six months, while others only offer 12-month terms (and some may give you the option to choose either one). For example, let's say you take out car insurance and a couple of months later you have an accident (and sadly, it was your fault).
Therefore, a total 6-month premium is what you owe the auto insurance company for coverage of a policy that lasts six months. Depending on your provider, you may be eligible for a discount on car insurance if you pay the full premium up front. Auto insurance companies review rates at the end of the policy period, so the cost of your insurance coverage may decrease more quickly.