Travelers 12-Month Auto Insurance: Year-Round Coverage And Peace Of Mind

Travelers does offer 12-month auto insurance policies. Most car insurance policies last for six months, but some companies, including Travelers, offer 12-month policies. A 12-month policy can be beneficial as it secures your car insurance rates and prevents your insurer from raising your premium for a year. However, it can also be a disadvantage if your rates decrease during that time due to a clean driving record or other factors. Ultimately, the decision to choose a six-month or 12-month policy depends on your personal preferences, driving record, and financial situation.

Pros and cons of 12-month policies

12-month auto insurance policies are less common than six-month policies, and they are offered by a limited number of providers. While a 12-month policy can lock in your rate for a year, it may also lock in a higher rate for a longer period.

Pros of 12-month policies

• Rate stability: Your rate is locked in for a year, protecting you from potential price increases.
• Fewer rate changes: You pay the same rate until the policy's renewal date.
• Less frequent renewals: You only need to renew your policy once a year, saving you time and effort.
• Fewer interruptions to coverage: With only one renewal date to keep track of, it's easier to ensure no lapses in coverage.
• Fewer rate increases: Even if you get into an accident, your rate will stay the same until the renewal date.

Cons of 12-month policies

• Lack of flexibility: You may be charged a fee or cancellation penalty if you want to switch insurance providers before the end of your policy term.
• High upfront costs: Paying for a full year of coverage upfront may be challenging, depending on your financial situation.
• Not always cheaper: A 12-month policy is typically not cheaper than a six-month policy and may even have a slightly higher premium.
• Rate doesn't go down: Even if you have a good driving record or a violation is removed from your record, your rate won't decrease until the end of your contract.

Rate stability

A 12-month car insurance policy offers rate stability, meaning you pay the same rate for a full year. This can be a good way to protect yourself against potential rate increases. However, it also means that your rate won't go down if, for example, you have a violation removed from your record.

A 12-month policy can be beneficial if you want to avoid frequent policy renewals and prefer the convenience of having coverage for a full year. It can also be a good option if you want to lock in a good rate for a whole year, especially in the context of rising insurance rates.

On the other hand, a six-month policy offers more flexibility. It allows you to reassess your coverage needs and switch companies if you find a better or cheaper option. With a six-month policy, you have more opportunities to take advantage of factors that could decrease your insurance rate, such as a milestone birthday, a credit score change, or a traffic violation being removed from your record.

While a 12-month policy provides rate stability, it's important to note that it doesn't always mean lower rates. Insurance companies will still consider other factors when determining your premium, such as your age, driving record, location, and vehicle type.

Flexibility

When choosing between a six-month and a 12-month auto insurance policy, you should consider whether your priority is flexibility or locked-in rates. A six-month policy allows for more flexibility than a 12-month policy.

Switching Insurance Companies

If you find a lower rate from a different insurer halfway through your policy term, you may not be able to switch insurance companies without a fee or cancellation penalty.

Rate Changes

A 12-month policy offers rate stability, but you don’t have the same amount of flexibility as a six-month policy. With a six-month policy, you can take advantage of more frequent rate changes.

Policy Changes

If you anticipate making changes to your auto coverage needs, such as adding or removing drivers or adjusting your coverage limits, a six-month car insurance policy may offer more flexibility.

Driving Record

A six-month policy allows for the possibility of securing lower rates sooner. For example, if you have a speeding ticket or other violation on your driving record due to fall off within a few months, you should stick with a six-month policy.

Billing

Twelve-month policies may require full payment up front, which may not be a viable option for some people.

Discounts for upfront payment

While most car insurance policies last for six months, some companies offer 12-month policies. Twelve-month policies are less common, so you may need to specifically request one from the provider. The biggest advantage of a 12-month policy is the opportunity to lock in a lower rate. With a locked rate, your premium will not increase during the year.

The primary benefit of a 12-month policy term is the relative infrequency of rate revisions. Six-month policies result in rate revisions twice each year. However, less frequent policy renewals could be negative, depending on your situation. For example, if you are involved in an accident, most insurance providers will increase your rates for up to three to five years. Even if this increase expires in the middle of the policy, you'll be charged the higher rate until you renew your insurance policy. If you're locked into a 12-month rate, then you'll have to wait longer.

Most car insurance companies offer coverage that lasts for either six or 12 months — though a six-month car insurance policy is the industry standard. Some insurers may provide discounts for purchasing a 12-month policy upfront, as it reduces administrative costs. However, some insurers like having the ability to recalculate your insurance costs twice a year and therefore won't offer incentives to purchase a 12-month policy.

If you can afford to pay upfront, many insurers will offer you a discount for paying in full. Opting to pay monthly shouldn't affect your premiums too much.

Pros

• Reduced insurance premiums: You can save up to 10% on your yearly insurance premium or avoid paying extra to finance your monthly payments.
• Payment freedom: You only have to think about paying for insurance once or twice a year and have one less monthly payment.

Cons

• Steep upfront payment: Many drivers can't afford to pay the yearly premium all at once.
• Ties up your funds: Setting aside a large amount of money ties up your money that you could use for other purposes. If using a credit card, you may also have to pay extra interest charges if you do not pay off your statement balance in full by the due date.
• Not all states qualify: California and New York do not allow insurers to provide paid-in-full discounts.

Companies offering 12-month policies

While six-month policies are the industry standard, some companies do offer 12-month auto insurance policies. These are less common, so you may need to specifically request a 12-month policy from the provider.

• Nationwide
• Liberty Mutual
• Travelers
• The General
• Kemper Specialty
• USAA (only for military members and their families)
• The Hartford (only for drivers over 55)

Frequently asked questions