Some auto insurance companies offer 12-month policies, allowing you to lock in a rate for a full year. This can provide stability and predictability in your budget.
Progressive, for example, offers 12-month policies, which can help you avoid rate increases during the policy term.
State Farm also offers 12-month policies, which can provide peace of mind knowing your rate won't change for a year.
Geico offers 12-month policies as well, and their rates are often lower than other insurance companies.
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Auto Insurance Companies
Auto insurance companies that offer 12-month policies include The Hartford, Liberty Mutual, The General, MetLife, Infinity, Erie, and Allstate. You can call these providers directly to confirm their offerings.
Some major insurance companies that offer 12-month policies are listed in the table below, along with their average monthly rates for liability-only and full-coverage car insurance.
Keep in mind that some companies may only offer 12-month policies for certain customers, like those with exceptionally high premiums.
Policy Options and Costs
You're looking for a 12-month car insurance policy, but do you know which companies offer them? Many major insurance companies do, including The Hartford, Liberty Mutual, and Allstate.
Some companies may only offer 12-month policies to certain customers, like those with high premiums, so it's best to call the provider directly to confirm.
The average cost of a 12-month car insurance policy is around $1,895 nationwide, but the cost varies based on your situation and the company you choose.
Here's a breakdown of the average costs across different insurers:
*USAA is only available to military community members and their families.
Progressive Policy Options
Progressive does not offer 12-month policies if you buy directly from Progressive.
You may qualify for a 12-month option if you purchase through a Progressive agent.
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What's the Cost?
The cost of a 12-month car insurance policy can vary significantly depending on several factors. The average cost nationwide is $1,895, but costs can range from $405 to $2,509, depending on the company and type of coverage.
Factors that can influence your rates include your age, with teenagers and drivers under 25 paying the most. Your driving history, including accidents and speeding tickets, can also impact your rates.
Your vehicle's make and model can also affect your insurance costs, with new cars that are expensive to repair costing more to insure. The cost of living in your area, including vehicle theft and vandalism rates, can also influence your rates.
The table below shows the average costs across different insurers:
*USAA is only available to military community members and their families.
Policy Offers Rate Stability
Many major insurance companies, such as The Hartford, Liberty Mutual, and Allstate, offer 12-month car insurance policies.
This can provide rate stability, as you'll pay the same premium for 12 months, rather than having to worry about rate increases or decreases.
Drivers with 12-month policies pay an average of $101 per month for liability coverage and $194 per month for full coverage.
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Full-coverage rates increased by 15% in the first half of 2024, but a 12-month policy can help you budget and plan for your insurance costs.
The General offers affordable car insurance policies with payment plans that include automatic monthly payments, which can be set up using a credit card or bank account.
This can be a huge time-saver and ensure that your car insurance is paid on time.
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Payment Plans and Discounts
The General offers flexible payment plans that let you know exactly how much you'll pay upfront. You'll receive your free auto insurance quote with the initial down payment and all subsequent monthly payments.
You can choose to pay your premium automatically every month using a credit card (Visa, Mastercard, Discover, or Amex) or have it deducted from your bank account. This is a huge time-saver and ensures your car insurance is paid on time.
Paying your policy in full can also get you a discount in most states. Discounts are also available for 6 and 12-month policies, as well as quarterly payments in some states.
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Full Payment Discount
In most states, paying your policy in full can get you a discount. This is a great way to save some money upfront.
If you choose to pay in full for your 6 or 12-month policy, you may be eligible for a discount, depending on your state. Some states also offer discounts for paying quarterly, so it's worth checking.
Paying in full is a simple way to receive a discount, and it's a good option to consider.
Core Payment Plans for Affordable Options
If you're looking for affordable car insurance, understanding your payment plan options is key. The General offers a range of payment plans to fit your needs.
You can pay your premium monthly, with options to use a credit card or have the payment deducted from your bank account. This is a huge time-saver and ensures your car insurance is always paid.
Some insurance companies, like The General, offer discounts for paying your policy in full. In most states, this can save you money on your car insurance premiums.
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You may also be eligible for discounts if you pay quarterly, depending on your state.
Here's a breakdown of some common payment plans for affordable car insurance:
The payment plans and discounts available can vary depending on your insurance company and location. It's always a good idea to ask about available discounts and payment plans when getting a quote for car insurance.
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Getting a Policy
To get a 12-month car insurance policy, you may need to shop around as not every insurer offers this type of policy. Review policy details and exclusions carefully to ensure you're getting the best value.
Comparing quotes from multiple companies can help you find the best price and coverage for your needs. Ryan McEachron, owner of ISU ARMAC Insurance Services, recommends reviewing policy details and exclusions carefully.
Shopping around can be time-consuming, but it's worth it to find a policy that provides extra protection at a minimal cost, such as roadside assistance or rental car reimbursement.
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How to Get Quotes
To get quotes for a 12-month policy, start by contacting your car insurance company to see if they offer longer policy terms. Some insurers do offer 12-month policies, but you may need to shop around to find one that suits your needs.
You can also contact other companies that offer 12-month auto insurance policies. Getting several quotes will help you compare prices and find the best deal.
Not every insurer offers 12-month policies, so be prepared to shop around. You can contact multiple companies to get quotes and find the one that works best for you.
Getting several 12-month auto insurance quotes will help you make an informed decision and find the best policy for your needs.
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Is a Policy?
A 12-month car insurance policy can be a great option for those who prefer stability and predictability in their insurance rates. This type of policy offers a year of coverage at a time, rather than the standard six-month renewal cycle.
Some insurance companies, like USAA, State Farm, and GEICO, offer 12-month policies, while others, like Progressive, may only offer six-month terms unless you purchase through an agent.
A 12-month policy can provide several benefits, including a locked-in rate and streamlined renewal process. You'll only have to deal with your auto insurance renewal once a year, which can save you time and hassle.
However, some insurers may only offer six-month terms for certain customers, such as those with high premiums.
It's worth noting that rates for 12-month policies are often comparable to six-month policies, and some insurers may offer discounts for opting for a longer policy term.
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Policy Selection and Rates
When selecting a 12-month car insurance policy, it's essential to consider factors that can affect your rates. Teenagers and drivers younger than 25 pay the most for car insurance, while senior drivers can also face increased rates.
If you live in an area prone to car theft and vandalism, your insurer may adjust your rates accordingly. The type of car you drive can also impact your insurance costs, with new cars that are expensive to repair potentially leading to higher rates.
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Here are some common factors that can influence your insurance rates:
- Accident history and vehicle theft rates in your area
- Type of car you drive, including safety features and theft likelihood
- Driving habits, including the amount of time you spend behind the wheel
- Speeding tickets and other moving violations
- Credit history (in states where insurers can use credit to generate a credit-based insurance score)
By understanding these factors, you can make an informed decision about your 12-month car insurance policy and choose the one that best fits your needs.
Factors Affecting Rates
Driving a new car that would cost a lot to repair if damaged in an accident can lead to higher insurance rates. Your vehicle's safety features and likelihood of theft are also taken into account when calculating rates.
Teenagers and drivers younger than 25 pay the most for car insurance, while senior drivers can also face increased rates. This is due to their age group's higher accident risk.
The more time you spend behind the wheel, the greater chance you have of needing to file an insurance claim. Insurers may raise your rates to account for the added risk.
Speeding tickets and other moving violations can affect your insurance rate. This includes tickets received by other drivers on your policy.
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Your credit history may affect insurance costs in states where insurers can use your credit to generate a credit-based insurance score. If you have good credit, you may pay less for insurance.
Here are some common factors that can influence your insurance rates:
- Age (teenagers and drivers younger than 25, senior drivers)
- Accident history, vehicle theft and vandalism rates, and costs of repairs in your area
- Vehicle type (new cars with high repair costs, safety features, and likelihood of theft)
- Driving habits (mileage, risk of filing a claim)
- Moving violations (speeding tickets, tickets received by other drivers on your policy)
- Credit history (in states where insurers can use credit to generate a credit-based insurance score)
When to Consider
If you're looking for a stable rate, consider a 12-month car insurance policy. This allows you to lock in your insurance rate for an entire year, which can be beneficial if rates are rising in your area.
A 12-month policy is also convenient if you don't want to renew your insurance as often. This means you can focus on other things without worrying about your policy expiring.
Having a clean driving record is another reason to choose a 12-month policy. This allows you to lock in a good rate for an entire year, which can save you money in the long run.
If you need consistent coverage and don't borrow or rent vehicles, a 12-month policy is probably your best bet. This type of policy provides coverage for a full year, giving you peace of mind.
Here are some specific situations where a 12-month policy makes sense:
- You want a stable rate.
- You don’t want to renew as often.
- You have a clean driving record.
- You need consistent coverage.
Pros and Cons
With a 12-month car insurance policy, you can expect fewer rate changes, so you'll pay the same monthly rate until your policy's renewal date.
One of the benefits of a 12-month policy is that you'll have fewer interruptions to coverage, making it easier to ensure you're always protected.
A 12-month policy also means you'll have fewer rate increases, even if you get into an accident, your rate will stay the same for the remaining months until your renewal date.
However, a 12-month policy can be inflexible, making it harder to switch insurance companies without a fee or penalty if you find a lower rate elsewhere.
You'll also face high up-front costs, which can be challenging to pay if you're on a tight budget.
Here are some key pros and cons to consider:
- Fewer rate changes: With a 12-month policy, you pay the same monthly rate until your renewal date.
- Less frequent renewals: You'll renew your policy yearly instead of every six months.
- Fewer interruptions to coverage: Renewing yearly ensures no lapses in coverage.
- Fewer rate increases: Your rate stays the same even if you get into an accident.
- Lack of flexibility: Switching insurance companies can be difficult and costly.
- High up-front costs: You'll need to pay for the full year upfront.
- Not cheaper: A 12-month policy typically isn't cheaper than a six-month policy.
- Your rate doesn't go down: Your rate can't decrease until the end of your contract.
Pros and Cons
If you're considering a 12-month car insurance policy, it's essential to weigh the pros and cons. Here are some key points to keep in mind.
Having a 12-month policy means you can expect fewer rate changes, so you'll pay the same monthly rate until your renewal date.
Renewing your car insurance policy yearly can save you time and energy, as you'll only need to do it once a year.
A 12-month policy makes it easier to ensure no lapses in coverage, as you'll only need to renew once a year.
You can count on your rate staying the same for a significant portion of your policy term, even if you get into an accident.
Here are the key pros and cons of a 12-month car insurance policy:
It's worth noting that a 12-month policy may not be the cheapest option, and you may face challenges paying for it upfront.
Final Thoughts on 1 Year
Purchasing a 12-month car insurance policy can give you the peace of mind that you will have coverage for an entire year.
Your premium costs will remain fixed for a whole year, which can provide financial stability.
If you pay for a whole year's worth of premiums upfront, you might save money.
Talking to your insurance professional can help you determine if there is cost savings for an annual policy renewal.
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Frequently Asked Questions
What is a 12 month insurance policy?
A 12-month insurance policy is a type of policy that locks in your rate for a year, providing stability and predictability in your insurance costs. This type of policy can help you save money and avoid rate increases.
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