What Are The Cheapest Short Term Auto Insurance Rates

Reader’s Question:

Is it a good idea to buy car insurance policies with six-month renewal intervals here in Michigan?

Carlyle

Detroit, MI

If you are good driver then this might be a great idea but even so, agreeing on short auto insurance coverage periods could turn out to be a double-edged sword. What you have to understand is that insurance is not only there to give you a huge amount of money every time you get in trouble, it is a business of managing risks and everyone’s risk potential changes from time to time. In your case, by going with shorter car insurance policies, you are allowing the insurance company to re-evaluate your risk (and rates) more frequently. This can mean lower auto insurance premiums if you are able to boast a clean driving record there in Michigan, or it could turn out for the worst if you get involved in even the slightest of traffic demeanor.

Personally, I would not recommend an auto insurance policy that is shorter than a year. Especially for beginners and first-time car owners. It would be so much easier for one’s budget if you know how much money you have to pay on car insurance each year. It also saves you the hassle of having to renew the policy more frequently. For those who are trying to improve on their bad driving records, however, shorter car insurance terms would allow them to enjoy lower rates much sooner. If you do have to go with a six-month auto insurance policy, make sure you understand exactly how and when your rates will be re-evaluated and changed.