Auto Insurance Once a Year

Most car insurance companies offer policies that run six months. Some will allow you to pay monthly, but many people choose to go the six month route. But what if you could only pay your car insurance once a year? This way you would be able to budget for the full twelve months, instead of six.

Farmers Insurance Group thinks that there is a market for 12 month policies, and has started offering them in Indiana. The company is based in Los Angeles, and thinks that customers will like the option of making their budgeting easier.

Agents like the idea for several reasons – one because they will have less paperwork to do, as they will only have to do it once a year, and also because if people are locked into a contract they will have less opportunity to shop around for other rates and possibly leave the company.

When asked, State Farm said that they do not currently offer twelve month policies and did not have any plans to start, although as anyone in the car insurance business knows, these things can change. It probably depends on how well it starts to work for Farmers, and if people start leaving State Farm car insurance because they want twelve month policies, I am sure they will revisit the idea.

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