Month to Month Car Insurance
Get a Quote and Save up to 40%!*
Get a Quote and Save up to 40%!*
If you’ve ever searched around for the cheapest insurance, you may have looked into month to month car insurance. You might need this type of temporary coverage because your finances can’t handle a huge biannual or annual payment. If you haven’t ever considered this option, it may be time to do so. Below, you’ll find out everything you need to know about car insurance first month free, including both the advantages and disadvantages. You’ll also find information on things you should consider when choosing your car insurance policy.
Instead of paying a large biannual or annual premium for your car insurance upfront, a monthly policy allows you to divide your payments over an agreed upon number of months. This is usually three, six, or twelve equal payments. Most payments are due at the end of the month, though your insurance company may be flexible with the due date.
Just as it is with any other type of car insurance policy, the amount you will pay depends on a variety of factors. They include:
There are plenty of benefits associated with monthly car insurance policies. It goes without saying that the major benefit is not being responsible for paying a large lump sum of money once or twice a year. After all, doesn’t it seem like you are paying less when your premium is divided over several months? You’ll definitely appreciate having to make your premium payments in smaller, more manageable increments.
• Flexibility: Flexibility is another great benefit. In this case, you don’t have to wait until the end of your coverage period to switch insurance companies. If you find a better deal somewhere else, you can go ahead and take advantage of it. In the event you aren’t able to immediately switch insurance companies, you can rest assured that you’ll be able to do so by the end of the month.
• Try Out Different Policies: When you choose shorter term coverage, you can “try out” the policy to make sure it fits your specific needs. If it doesn’t, you can alter the terms or switch insurance companies altogether. If at a later time, you decide you would rather make biannual or annual payments, you can do that too.
Just as there are benefits, there are also a few disadvantages associated with this type of policy. They include:
Higher premiums: Although you won’t have to pay a large lump sum, you may have to pay more overall than you would with an annual or biannual policy. Insurers are well aware that month to month customers can cancel their contract at any time, making this a less profitable option for them. To keep customers (and their profit margin), they will usually give you a small discount for making a large lump sum payment.
Minimal Benefits: Rarely do month to month policies offer the perks you’ll get with an annual or biannual policy. This means you probably won’t have roadside assistance.
• Driving Without Coverage: Every now and then you may forget to make a payment. While that might not be a big deal with other monthly bills, this isn’t true for your car insurance. Missing a payment could cause your policy to terminate prematurely, meaning you’ll be left driving with no coverage.
The good news is some insurers offer short-term auto insurance from 1 month to 3 months. The bad news is most don’t. Most carriers offer policies of 6 months to 12 months. Acquiring new customers and setting up a policy is costly. There’s just not a lot of money to be made in one to three-month policies. Here are several carriers that offer temporary coverage.
This company specializes in safe drivers and offers low rates in the following states: Arizona, Arkansas, Delaware, Illinois, Indiana, Iowa, Kentucky,
Louisiana, Maryland, Mississippi, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, and Utah. You can download the Root app and try out this unique insurer for 1 month.
If you don’t drive too much Metromile can save you serious money. Your rates are based on a pay-per-mile system. The less you drive the less you pay. The coverage is currently available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.
If you need temporary ins, Allstate is one of the only companies that offers coverage in all 50 states.
Is One Month Auto Insurance Right for You?
You’re the only person who knows the answer to this question. In some situations, it may be. For example:
• If you’re strapped for cash and can’t afford to make a huge payment upfront, this is a great option, allowing you to get your car on the road.
• It is also a good option if you are planning to move in the near future and aren’t sure what insurance providers will be available in the area you will soon be living.
• It’s worth considering if you’re planning to trade your current vehicle in the next few months because it will be easy to switch providers at the same time.
• Finally, if you’re not 100% certain you are getting the best possible deal, having a month to month car insurance while you continue to research your options is ideal. Keep in mind that the longer you sign a contract for, the more likely you are to get a good discount on your premium.
If you’re not sure that monthly car insurance is the best choice in your current situation, there are several other alternatives. This is particularly true if you are willing to sign a contract for at least six months and have the money to pay the entire policy upfront. This is going to get you the biggest discount. Here are a few more options to consider.
• Another method of saving money on your coverage is to add multiple cars to your policy. Car insurance companies are usually happy to compensate you for bundling multiple vehicles with them. For every car you add, your policy will be discounted even further. On the other hand, the more cars you have on a policy, the higher your premium will be.
• Paying your car off is another way to lower your car insurance premium (and put the money you’d spend on your monthly payment in your pocket). As long as you owe money on a vehicle, you can expect to pay higher rates. One of the primary reasons for this is because almost all lenders require that you carry comprehensive and collision coverage until you have completely paid the vehicle off.
• Be sure that your car insurance coverage never lapses. If you accidentally let your insurance lapse, you’ll be viewed as a “less than desirable” customer for some companies. After all, it indicates that you may not be the best at paying your bills and you may have driven uninsured in the past.
• Another consideration involves making sure your credit score stays at 650 or higher. Most states allow insurance companies to consider your credit score when pricing your policy. The drivers who are offered the best rates have a credit score of at least 650.
• Finally, take a look at your history. If you are prone to driving violations or have ever had your license suspended or revoked, insurance companies will take this into account when determining your rate. They’ll also look at any claims you may have filed in the past. Obviously, the drivers they are going to give the best rates too, are those with no history of past claims.
Above all, the most important thing to remember when searching for month to month car insurance is to do your research. Take the time to get quotes from multiple companies and compare them. Get started now by entering your zip code.