Can you buy car insurance on a monthly basis? (2021)
If you don’t want to take out a car insurance plan, buying car insurance on a monthly basis sounds like a good idea. But can I use temporary car insurance? Read on to find out if this insurance is available in your state and what are the consequences of not purchasing full auto insurance.
If you are looking into car insurance plans, we recommend that you get multiple quotes from the best car insurance companies before you make a decision. Your quote will be much different than your neighbor’s rate, because it depends on factors such as vehicle make and model, driving history, and your age. Enter your zip code below to get free quotes.
What Is Month-to-Month Car Insurance?
Alternatives to Month-to-Month Car Insurance
Usage-Based Insurance
Six-Month Plans
Rideshare Insurance
Final Thoughts on Month-to-Month Car Insurance
Our Recommendations for Auto Insurance
GEICO: Best Overall
Progressive: Best for High-Risk Drivers
FAQ About Month-to-Month Insurance
What Is Month-to-Month Car Insurance?
Month-to-month car insurance is a form of temporary car insurance in which the policyholder pays for coverage for a short amount of time rather than for 12 months. It is typically hard to find and not specifically offered by top providers such as USAA, GEICO, State Farm, and Progressive, though there are plans that are short-term in nature.
Our team called a few auto insurance providers and were told that it is necessary to get a quote to see if the provider can meet your needs with temporary car insurance coverage.
Alternatives to Month-to-Month Car Insurance
Instead of seeking a specific plan for month-to-month auto insurance, consider these alternatives:
Car insurance from a rental company (tends to be 30 days or less)
Discounted car insurance for students, military members, and family
Bundling car insurance with another insurance policy to save money
Driving a close friend or family member’s car for a short period of time
Adding a new car onto an existing auto policy for a short period of time
In addition to those options, some providers offer usage-based insurance, six-month plans with no cancellation fees, and rideshare insurance.
Usage-Based Insurance
Usage-based car insurance is not temporary in terms of the length of coverage, but it allows drivers to pay based on how they drive. This can be a great option for people looking for a plan that is less expensive than a typical car insurance policy.
Here are a few top providers that offer usage-based plans through a mobile app:
Auto Insurance Company
Usage-Based Option
Details
Overall Provider Rating
USAA
SafePilotTM
Enroll and save 5% automatically. The app will automatically log and score your driving habits so you can save up to 20%.
96%
GEICO
DriveEasy
The app calculates a Driving Score based on your habits.
96%
Progressive
Snapshot
®
Only available in select states, Snapshot tracks your habits as well as how much time you spend driving.
95%
State Farm
Drive Safe & SaveTM
Save money just for signing up. How you drive can save you more (up to 30%).
95%
Root Auto
Root app
Root operates entirely as a usage-based insurance company. An app tracks driving and miles through the to give you a fair rate.
89%
American Family
KnowYourDrive
Get 10% off your premium just for signing up. Your good driving behaviors can save you more (up to 20%).
87%
MetroMile
Pay-per-mile insurance
This app only tracks miles, not behavior, so the amount you save is based on how much you drive. On average, customers save over $500 per year.
80%
Six-Month Plans
Insurers like USAA, GEICO, Progressive, and AAA offer six-month auto insurance policies too, most withou
t cancellation fees. If you are looking for short-term car insurance in place of month-to-month car insurance, we recommend checking out these providers.Rideshare Insurance
Rideshare insurance tends to be short-term in nature and is great for those driving for Uber, Lyft, and food delivery services. Usually, your personal auto insurance coverage will not be enough to cover everything, and you will need to add rideshare insurance for extra padding. It is best not to risk an accident without enough coverage on your policy while you are driving for work.
Final Thoughts on Month-to-Month Car Insurance
Month-to-month car insurance sounds flexible and simple, but in reality, few reputable providers offer such coverage. After a deep dive into other short-term insurance options, we recommend seeking an alternative form of coverage for your car.
To see how much you would pay for a policy from one of the nation’s leading auto insurers, enter your zip code below. There’s no obligation to commit to any policy after getting a free quote, and by comparing quotes side by side, you may be able to find great coverage.
Our Recommendations for Auto Insurance
Our team has done the research on the best auto insurance providers so you don’t have to. If you’re looking for alternatives to temporary car insurance, GEICO and Progressive are two of our top choices that both offer usage-based insurance, six-month plans, and rideshare insurance.
GEICO: Best Overall
Our team rated Geico at 96 percent. GEICO has a Better Business Bureau (BBB) rating of A+ and an AM Best financial strength rating of A++, which is considered outstanding. Coverage from GEICO is especially great for military members and students because of the discounts available. The company also lets you bundle discounts together to increase the amount you save.
For more information about coverage, read our full GEICO auto insurance review.
Progressive: Best for High-Risk Drivers
Our team rated Progressive at 95 percent because of its outstanding coverage and online experience. The car insurance company has an A+ rating from AM Best and the BBB. With Progressive, you can get standard coverage and extras like accident forgiveness, custom parts and equipment coverage, and gap insurance.
If you’re a high-risk driver, we recommend getting a quote from Progressive. Read our Progressive car insurance review for more information.
FAQ About Month-to-Month Insurance
Can I insure a car for just one month?
You can insure a car for just one month if you are purchasing a plan for rental car insurance or, in some cases, rideshare insurance. When it comes to traditional coverage though, you cannot usually get month-to-month car insurance from a reputable company.
How do I know how much I have to pay every month on car insurance?
When you get a quote from a car insurance company, it will include information about your premium and how much you will need to pay monthly. Most leading car insurance providers also have mobile apps that let you check your policy details and make payments.
How much does it normally cost per month to add a teen driver to car insurance policy?
Adding a teen driver to a car insurance policy can be expensive, unless you pick the right provider with the right discounts. Our team reviewed every major car insurance company and found that Liberty Mutual and State Farm are the best options for teen drivers. Discounts and safe driving programs can help you save money after adding a teen driver.
Why can’t I pay month-to-month for car insurance?
You are unlikely to be able to pay the monthly car insurance premium unless you have a carpool insurance or car rental insurance policy. If you are looking for cheaper or more temporary insurance, we recommend that you look for a car insurance provider that offers usage-based options and a six-month plan.
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