Wednesday, October 04, 2006

Why do some car insurance companies only write six month policies?

Answer

In a broader sense, it is so the company can reevaluate its risk and adjust your rate properly. Sometimes your rate may go up at the six month point and sometimes it may go down.

If you only could purchase a 12 month policy a company would be more inclined to charge more to cover the possibility that they would be assuming additional risk.

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