Based on our research, we found that USAA has the cheapest car insurance policies for six and 12 months on average. A 12-month car insurance policy is most effective when you already have cheap car insurance and want to set your premium to protect it from potential increases in rates. Keep in mind that online car insurance quotes are typically six months old, and to buy a 12-month car insurance policy, you may have to work directly with an insurance agent. While GEICO only offers six-month policies, many prominent insurance providers have 12-month auto insurance policies available in most states.
Auto insurance companies like having the opportunity to adjust their car insurance rates every six months, and sometimes they set higher insurance premiums on annual policies or don't offer them at all. A 12-month policy is the same as a regular auto insurance policy in terms of deductibles, coverage options, and compliance with state car insurance requirements. So where can you buy 12-month car insurance? One notable insurance provider that doesn't sell annual policies is GEICO. Although it's a longer commitment and you've probably already paid for it, you can always cancel your 12-month car insurance and receive a refund for the remaining part of the policy term.
The USAA has a higher level of auto insurance complaints than many large insurers, according to complaints filed with state insurance departments across the country. California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit when setting the price of car insurance. These include Allstate, USAA, The Hartford, American Family, Erie, MetLife, Sfeco and Liberty Mutual. In addition, auto insurance companies will increase auto insurance rates for all their policyholders if the company has to recover the costs of a difficult financial year.
Your insurance rate can increase with a six-month policy, even if you haven't had a car accident or received any traffic violations during that time.