What does total 12-month premium mean?

Your car insurance premium is the specific amount of money you pay to a company to protect you and your vehicle. Premiums are generally paid monthly, every six months, or annually and are determined by several factors, such as your driving history, age, and the coverages you select as part of your policy. Insurance companies discover how to calculate insurance premiums using their own unique formulas. The total premium on your auto policy is highly personalized.

The amount you pay for your health insurance every month. In addition to the premium, you usually have to pay other health care costs, such as the deductible, co-pays, and coinsurance. If you have a Marketplace health plan, you may be able to reduce your costs with a premium tax credit. Your health care expenses that are not reimbursed by insurance Out-of-pocket expenses include deductibles, coinsurance, and copays for covered services, plus all costs for services that aren't covered.

For example, six-month policies may offer you more flexibility and discounts, but your premium may increase more frequently. After that term ends, your insurance company can review your premium, which could cause your car insurance rate to rise or fall. In some cases, it's cheaper to pay your car insurance premium once every six months, as some insurance companies may offer discounts on full payments. Having a clean driving record or switching to a safer car can help lower the cost of your car insurance premium.

Most insurance companies allow you to choose between paying your car insurance premium monthly, every six months, or annually. A six-month auto insurance policy is a policy that provides coverage for six months as long as you pay your premium. If you want to exclude coverage after paying off your car loan or increase the deductibles on an old car, you can do so sooner with a six-month car insurance policy compared to 12-month coverage. Choosing between six- and 12-month car insurance depends on the options available and how you prefer to manage your money.

A 12-month policy premium is the total amount you pay for an auto insurance policy that offers 12 months of coverage, which is often divided into monthly payments. When reviewing your car insurance quotes, you may notice that some insurers offer durations of six or 12 months. If you don't disclose the previous accidents you were involved in, your car insurance premium could be significantly higher than the amount quoted.