Review the pros and cons of purchasing a short-term auto insurance policy.
If you want flexible auto insurance, you might be interested in a short-term car insurance policy. However, short-term auto insurance agreements are rare for multiple reasons.
Most large companies don't offer contracts for periods shorter than six months. Because auto insurance coverage is required in every state but one, it can be risky to jump between policies. Additionally, you risk having gaps in your car insurance history by swapping policies frequently, which could lead to more expensive prices in the future.
Good news: car insurance policies commonly last for only six months. This quick turnaround allows car insurance companies to re-rate — or recalculate — your premiums using your updated driving history and personal profile.
It also stands as the perfect opportunity for you to reset your policy by considering other car insurers. Comparing quotes on the Internet costs nothing, and there’s no penalty for switching insurance companies at the end of your policy — or even in the middle of your policy term, assuming you never let your insurance lapse.
The flexible nature of car insurance makes it relatively easy to find with limited advance notice. If you're asked to purchase a policy to take a car off the lot, looking for coverage for a relatively long-term auto rental or seeking coverage for a car you don't own but drive regularly, consider purchasing a six-month policy and cutting the agreement short as needed.
Below are typical car insurance prices in Alaska, ordered by major underwriters and major cities. If your bills exceed the rates listed below, consider other options.
| Insurance Company | Average 6-Month Rate | Average Monthly Rate |
| Alaska State Average — All Companies | $637 | $106 |
| USAA | $519 | $86 |
| State Farm | $549 | $91 |
| Umialik Insurance | $620 | $103 |
| Progressive | $753 | $125 |
| GEICO | $899 | $150 |
The most budget-friendly option for single-month auto insurance in Alaska is USAA, through which you can save $5 per month, compared to the next-best option, State Farm. In Alaska, the average monthly cost of car insurance is $106, or $637 over a biannual contract.
Where you live has as large an effect on your car insurance rates as does your choice of insurance company. Car insurance companies take into account the number of local insurance claims when assigning prices by ZIP code. Check out insurance rates in the biggest cities in Alaska and compare the amount you pay.
| Location | Average 6-Month Rate | Average Monthly Rate |
| Anchorage | $751 | $125 |
| Fairbanks | $661 | $110 |
| Juneau | $529 | $88 |
| College | $641 | $125 |
| Sitka | $522 | $87 |
Because of the myriad factors involved in setting insurance rates, your quotes may not match the totals displayed above. If your current costs don't match those listed above, take some time to weigh your options. The short-term duration of a car insurance policy enhances the importance of staying in-the-know and willing to shop.
Learn more about temporary auto insurance or use The Zebra to compare quotes for free online.
