How and why you should opt for monthly Car Insurance.
We know the traditional ways of having our car insured. Auto insurance policies provide coverage to your car in the unfortunate circumstance that it gets damaged or stolen. Road accidents and other mishaps not only invite tragedies but also lots of financial expense that may be hard for people to cope with.
If your car is insured, the insurance company will bear the cost of repairs, liabilities and even medical expenses if there have been any injuries.
This is usually done for a long term where massive amounts of years are covered- but some people don’t even need that long a coverage. But are there any monthly or temporary auto insurance options available?
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Monthly Car Insurance
A monthly car insurance policy provides you cover for up to 28 days. Many people don’t even need coverage when it comes to cars, especially year long coverage. So these people can opt for monthly car insurance.
Why do you need one?
There are specific situations where people would opt for a temporary car insurance policy:
- If you’re going on a one month long driving trip within the States, you’d only need cover if something unfortunate were to happen to the vehicle within these 28 days, your insurance company would cover the costs.
- If you’re teaching your child how to drive and would want any beginners mishaps to be covered by the company, a monthly insurance plan is your best bet!
- Or if you’re borrowing your friend’s car for a month and you’re scared you wouldn’t be able to pay them back if something unfortunate were to happen with their vehicle under your watch.
- You want temporary insurance because you bought a new car and your State requires you to have your car insured as soon as possible. So you decide to use these 28 days to shop around looking for a cheap yet dependable long term contract.
A one month car insurance plan is all you need for a cheap price if you don’t wish to have a full term contract, because why do you even want to keep paying premiums if you don’t even need the insurance.
Month to Month Car Insurance Quotes
Your monthly car insurance quote will depend on a number of factors such as your age, driving history, hobbies etc. Even basic factors like how you store your car and how well you maintain it will actually bring up your score of getting a reasonable insurance quote.
You need to have a clean driving record with absolutely no violations under your belt, especially DUI for you to get a cheap premium quote for the days you will be insured.
Average drivers are expected to pay less than $16 a day for their monthly car insurance policy.
Moreover, if you’re not too comfortable with monthly plans, you can also extend them to 6-month plans which will roughly cost you less than $40 a month.
Companies with 6-month or less auto insurance plans:
|Company||6-Month Plan||Cancellation Fee||Overall Rating|
|Geico Auto Insurance||Yes||No||4.5|
|Progressive Car Insurance||Yes||Depends||4.5|
|USAA Car Insurance*||Yes||No||5.0|
|AAA Car Insurance||Yes||No||4.0|
Note: Sample quotes have been extracted online, courtesy of Motor1.
Nowadays there are very few companies that offer super short policy plans that are of only a month, so what people do is they opt for policy plans that are 6 month based. They pay premiums of one month only and ask for coverage if the car is damaged within that month, and they cancel the policy before paying for the second month.
This table above filters out companies that have no cancellation fee, which means that you can cancel out the policy for free. This is one great advantage for people who are willing to go for monthly car insurance but end up with 6-month plans.
Which is better?
Many people debate among themselves whether a short term plan is better than a long term one. The answer lies within yourself.
What do you need? What can you afford? What is the legal requirement of your state?
If you initially opted for a 1 month policy and somehow you see your needs changing, you can easily extend your policy period. Your insurance company will be able to guide you better on what the charges are now going to be and if you’re liable to pay any further fee.
Of course, short term plans have very low coverage than long term plans, which is why some people may want to opt for long term plans. Repair and revival is very expensive especially if your car gets totaled or stolen, and mediocre households can’t bear the added expense, which is why a big coverage amount may look very attractive. However, with a large coverage amount there come very high premiums that you have to pay each month or year to prevent the policy from lapsing.
You really have to decide which policy works out best for you and then shop around to look for cheap insurance quotes. Once you finalize the monthly plan you’re for, you’re good to go!