Can You Get Six-Month Car Insurance?

Six-month car insurance policies provide coverage for half a year, offering flexibility and opportunities to adjust rates more frequently. Unlike 12-month policies, they allow insurers to reevaluate your premiums every six months based on factors like your driving record and market conditions.

How Six-Month Car Insurance Works

Some standard auto insurance policies are six months long rather than annual. Here’s why:

• More Flexibility – Drivers can switch providers more frequently to find better rates.
• Adjusts to Your Risk Profile – Insurers reassess your driving record, location, and market factors every six months, which can increase or decrease your premiums.
• Prevents Locking in High Rates – If your rates go up, you can shop around for better deals instead of being locked into a full-year policy.

When the six-month term ends, you can renew your policy with your current insurer or shop around for better coverage and rates from other providers. Insurance companies reassess your policy at renewal, so premiums may change based on factors like your driving record, location, or market trends.

If nothing changes, you can keep the same policy; if rates increase, switching providers could save you money. Always plan ahead to avoid lapses in coverage during this transition.

How Much Does 6-Month Car Insurance Cost?

The average cost of a six-month car insurance policy is approximately $1,093 for full coverage. For liability-only coverage, the cost is significantly lower, averaging around $450 for six months. These rates vary depending on factors such as the insurer, location, vehicle, and driving history.

Below is a table showing the average monthly premiums (rounded for simplicity) for 10 national car insurance companies, comparing full-coverage and liability-only options:

Please note that these rates are averages and can vary based on individual circumstances and regional factors.

Factors That Affect Six-Month Car Insurance Costs

Several variables influence the cost of a six-month car insurance policy. Insurers assess both personal and external factors to determine the level of risk associated with providing coverage. Here’s a breakdown of the key factors:

1. Driver’s Age And Experience

• Age: Younger drivers, especially those under 25, often face higher premiums due to a lack of experience and higher accident rates.
• Driving History: New drivers or those with limited driving history may also pay more because insurers lack data to assess their risk.

2. Driving Record

• Accidents and Violations: A history of accidents or traffic violations significantly raises premiums. Insurers see these as indicators of higher risk.
• Clean Record Discounts: A clean driving record can qualify for lower rates and good driver discounts.

3. Vehicle Type

• Make and Model: Expensive or high-performance cars cost more to insure due to repair costs and theft risk.
• Safety Features: Vehicles equipped with advanced safety features, like anti-lock brakes and airbags, can lower costs.
• Electric Vehicles (EVs): Some insurers charge higher premiums due to expensive battery repairs.

4. Coverage Levels

• Policy Limits: Higher coverage limits increase premiums but offer greater financial protection.
• Add-ons: Optional features like roadside assistance or rental car reimbursement add to the policy cost.

5. Location

• Geography: Rates vary based on state regulations, urban vs. rural locations, and local accident rates.
• Weather Risks: Areas prone to natural disasters or extreme weather often see higher premiums.

6. Annual Mileage

• More Miles = Higher Costs: If you drive over 15,000 miles per year, insurers may see you as a higher risk.
• Low-Mileage Discounts: Some insurers offer pay-per-mile policies or discounts for drivers under 7,500 miles annually.

7. Credit Score

• Impact on Risk Assessment: In many states, insurers use credit scores as a factor, with lower scores often leading to higher premiums.
• Exceptions: Some states, like California and Massachusetts, prohibit using credit scores for car insurance rates.

8. Claims History

• Past Claims: A history of insurance claims, especially those at fault, can raise premiums.
• Claims-Free Discounts: Maintaining a history without claims may lower costs.

9. Discounts and Incentives

• Bundling Policies: Combining auto insurance with homeowners or renters insurance can reduce costs.
• Safe Driving Programs: Participating in insurer-sponsored driving programs may lead to discounts.

By understanding these factors, you can take proactive steps to lower your six-month car insurance premiums, such as improving your driving record, choosing vehicles with better safety ratings, or reducing annual mileage.

6-Month Car Insurance vs.12-Month Car Insurance Cost By State

Car insurance policies are typically offered in either six-month or twelve-month terms. On average, a six-month car insurance policy costs $1,093, or about $182 per month, while a twelve-month policy costs $2,100, or $175 per month. Paying annually often results in cost savings, as insurers may offer discounts for longer-term policies.

Below is a table comparing average monthly premiums for six-month and twelve-month car insurance policies in each U.S. state:

6-Month Car Insurance Vs 12-Month Car Insurance: Which Should You Choose?

Deciding between a six-month and twelve-month car insurance policy depends on your unique circumstances and priorities. Here’s a breakdown of the key factors that can help guide your decision:

1. Cost Savings

• Six-Month Policy: Often has slightly higher monthly premiums compared to an annual policy. However, it can be advantageous if you expect changes in your driving record, vehicle, or insurance needs within the near future.
• Twelve-Month Policy: Typically offers lower monthly premiums and may come with discounts for committing to a longer term. This can lead to overall savings and better budgeting for those who want financial predictability.

2. Flexibility

• Six-Month Policy: Ideal for drivers who value adaptability. If your circumstances are likely to change—such as moving to a new state, getting a new car, or expecting lower rates due to an improved driving record—this term allows you to adjust your policy more frequently. This is ideal if:
  • You’re planning to move to another state.
  • Your credit score or driving record is improving.
  • You anticipate buying a new car soon.
• Twelve-Month Policy: Provides less frequent opportunities for change, as your policy is locked in for a longer period. This is better suited for drivers with stable circumstances who don’t anticipate the need for mid-term adjustments.

3. Rate Stability

• Six-Month Policy: Your insurer will reassess your rates at renewal, which could result in an increase due to factors like accidents, traffic violations, or changes in the local market. This may mean more frequent fluctuations in your premiums, based on:
  • Accidents or traffic violations.
  • Changes in local insurance market rates.
  • A better driving record leading to potential discounts.
• Twelve-Month Policy: Locks in your rate for a full year, offering more security and predictability. For those who prefer knowing their premium won’t change for a longer period, this policy is a clear winner.

4. Personal Financial Situation

• If you’re on a tight monthly budget, a twelve-month policy might make sense due to its lower monthly premiums and potential discounts. However, if you can’t commit to a large annual payment up front, a six-month policy might provide more manageable flexibility with minimal upfront costs.

5. Potential Discounts

• Six-Month Policy: Some insurers may not offer loyalty or term-based discounts for shorter policies. However, it allows you to frequently shop around for better deals, potentially benefiting from competitor promotions.
• Twelve-Month Policy: Many insurers offer discounted rates for longer commitments, making annual policies a practical choice if saving money overall is your priority.

How To Decide Based On Your Situation

• Frequent Changes in Circumstances: If you move, change vehicles often, or are actively improving your driving habits, a six-month policy can help adapt to these changes.
• Stability and Predictability: If you have a reliable budget, consistent driving habits, and a good record, a twelve-month policy provides stability and long-term savings.
• Shopping Around for Deals: Those who enjoy comparing rates or expect significant life changes may benefit from the flexibility of a six-month term.
• Budget Constraints: Keep in mind your ability to pay up front. Annual payments often provide discounts, but smaller periodic payments might be better for tight monthly budgets.

There’s no one-size-fits-all answer. Evaluate your current financial situation, your likelihood of life or driving changes, and your preference for stability.

• If you value flexibility, expect major life changes, or want to shop around for better rates, a six-month policy is the better choice.
• If you prefer long-term stability, potential cost savings, and fewer renewals, go with a twelve-month policy.
• Always compare quotes before renewal, as some insurers offer loyalty discounts or usage-based savings for 12-month policies.

Pros Of A 6-Month Car Insurance Policy

A six-month car insurance policy offers greater flexibility but comes with more frequent rate adjustments. Below, we break down the key benefits and drawbacks to help you decide if it’s the right option.

More frequent rate reviews

• Your insurer reassesses your premium every six months, meaning you can qualify for lower rates faster if your driving record improves.
• If you recently had a speeding ticket or accident, you may be able to get a lower rate sooner after those incidents drop off your record.

Flexibility to switch insurers

• Unlike a 12-month policy, you’re not locked in for a full year, allowing you to shop around for better rates more frequently.
• Ideal if you’re moving states, changing vehicles, or adjusting coverage needs.

Adjust coverage more easily

• Need to add or remove coverage? A 6-month term gives you more opportunities to make changes.
• Perfect for drivers improving their credit score or switching vehicles.

Potential discounts

• If your credit score, driving history, or mileage improves, insurers may offer better discounts upon renewal.
• Great for new drivers or high-risk drivers working toward lower rates.

Avoid long-term financial commitment

• A six-month policy means smaller upfront payments compared to a full-year policy.
• Helpful for drivers on tight budgets or those who prefer smaller, more frequent payments.

Cons Of A 6-Month Car Insurance Policy

Rates can increase sooner

• If accidents, tickets, or insurance market changes occur, you could face a premium increase twice a year.
• 12-month policies lock in rates, but 6-month policies adjust more frequently.

Less stability in premiums

• A 6-month policy can fluctuate more often based on insurer pricing models.
• If you prefer predictable costs, a 12-month policy may be a better fit.

Higher average monthly costs

• On average, six-month policies cost more per month than a 12-month policy due to the shorter term and lack of long-term discounts.

Frequent renewals required

• You’ll need to renew your policy twice a year, which can be inconvenient compared to a one-time annual renewal.

No locked-in long-term savings

• Unlike 12-month policies, six-month terms don’t always offer loyalty or long-term commitment discounts.
• Some insurers reward customers who stay longer, making a year-long policy more cost-effective in the long run.

Pros and Cons of a 12-Month Car Insurance Policy

A 12-month car insurance policy offers rate stability and potential long-term savings, but it also comes with less flexibility than a six-month policy. Below, we break down the key benefits and drawbacks to help you decide if it’s the right option.

Pros Of A 12-Month Car Insurance Policy

1. Locked-In Premium Stability

• Your rate is locked in for a full year, meaning you won’t face mid-year price hikes.
• This is especially beneficial if insurance rates are expected to rise due to market changes.

2. Less Frequent Renewals

• You only have to renew once a year, making it more convenient than a six-month policy.
• Reduces the hassle of shopping around and comparing quotes twice a year.

3. Potential for Long-Term Savings

• Some insurers offer loyalty discounts for committing to a 12-month term.
• You may save 5-10% annually compared to renewing two six-month policies.

4. Easier to Budget Expenses

• A 12-month policy provides consistent pricing, making it easier to plan your finances.
• No unexpected mid-year premium increases disrupting your budget.

5. Protection Against Rate Hikes

• If you lock in a lower rate now, you can delay potential price increases that may happen over the next year.
• Useful in states where insurance costs fluctuate often.

Cons of a 12-Month Car Insurance Policy

1. Limited Flexibility to Adjust

• You can’t easily switch insurers or adjust your coverage as frequently as with a six-month policy.
• If your financial situation changes, you’re locked into your existing plan until renewal.

2. Delays Benefits of Improvements

• If you improve your credit score or driving record, you won’t qualify for lower rates until your next renewal in 12 months.
• A six-month policy allows for faster reassessment of your risk profile.

3. Harder to Switch Insurers

• If you find a cheaper policy elsewhere, you may need to cancel early, which could result in cancellation fees.
• With a six-month policy, you can switch providers more frequently.

4. Commitment to Long-Term Coverage

• A 12-month policy requires a longer commitment, which may not be ideal if you anticipate moving or selling your vehicle.

5. Potential Overpayment if Risks Drop

• If insurance rates drop mid-year, you’re stuck paying the same premium until your renewal.
• A six-month policy allows you to take advantage of lower rates sooner.