Short Term Car Insurance in Alaska
Reader’s Question:
Would it be better to stay with a six-months car insurance policy or a longer one for my coverage here in Alaska? Is there such a thing as short term car insurance?
Thomas
Anchorage, AK
Whether or not it would be to your advantage to get a short-term or long-term car insurance coverage depends on how well you are able to maintain a good driving and credit history. Normally, it would be a good start to have shorter car insurance contracts, especially if you are just beginning to build, or rebuilding, a good driving history. This will allow you to reap the benefits of being a responsible or safer driver in the form of reduced car insurance rates. Unfortunately, car insurance companies don’t really like you having such a relatively flexible policy. This makes their business unpredictable, as compared to having customers with fixed insurance rates for a longer period of time.
Another reason to stick with short-term policies is that long term policies rates generally takes into account any long term risk you may pose as a customer so long-term rates might actually be higher. So as you can tell, its a delicate balance between either short-term policies working to your advantage or, depending on how trends on car accidents are and the frequency of claim being filed in your area, give your car insurance provider there in Alaska more reason to hike your rates up. I suggest you review your car insurance policy well if you decide to get a six-month coverage.