Policy Term

Car insurance is a part of life for drivers in the United States. Drivers have to buy car insurance to be able to legally drive. Drivers have to buy insurance to drive, but should understand the terms and conditions that apply to their policy. One of the most important things a driver should be aware of the policy term that applies to their coverage. Car insurance is sold in increments of time that typically last six months at a time. Insurance expiration is extremely important to be aware of when looking at your policy. This information helps drivers to know when it is safe to be driving their cars.

Insurance is sold in periods of time because factors can change that affect pricing over time. During the period of time when your policy is active, you could be involved in an accident or get tickets that will affect the price of your monthly premium. Your policy term is the period of time when your insurance stays active. This term has a specific start and end date that is printed on the insurance card. Insurance expiration is very important to be aware of because after that date, your policy needs to be renewed to continue coverage on your vehicle. Driving without insurance can cause serious legal and financial problems.

If you were to be pulled over and your policy term has not started yet or has already ended, you will receive a ticket for driving an uninsured vehicle. These tickets can be quite expensive and often require the driver to show up in court to answer for it. This is an inconvenience and is easily avoidable by making sure that your policy is active. If your policy is coming close to its end date then you should renew your current policy or find a new one to avoid tickets or driving without insurance. Insurance expiration can be a good thing if your safe driving can get you a discount when you go to renew, but a lapse in coverage tends to increase costs.

Drivers should be aware of the fact that insurance is sold in lengths of time called the policy term. The standard term for an insurance policy is six months. The dates that your policy is active for are printed on the insurance card along with your policy number and vehicle information. Insurance expiration is the date that your policy ends, usually six months from the date it started. Once you reach the expiration date for your insurance policy you will need to renew your policy or find a new one. Without insurance coverage, you are personally responsible for damages in collisions. Speak with your agent about your terms.