Month to Month Car Insurance

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Month to Month Car Insurance

If you’ve needed short-term coverage, you may have looked into month-to-month car insurance or wonder if it’s possible to get it. You might need this temporary coverage because your finances are tight, and you can’t make a larger biannual or annual premium payment. If you haven’t ever considered month-to-month auto insurance as an 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 and tips to save more.

month to month car insurance

What is Monthly Auto Insurance?

Instead of paying a large biannual or annual premium for your car insurance up front, most insurers offer monthly installment payments. You can divide your costs over an agreed-upon number of months. The total cost will usually be split into three, six, or twelve equal payments. Remember that you won’t save any money with monthly car insurance. However, being short on cash can make the difference between being able to afford coverage and not. It’s also important to note many insurers charge a bit more for installment payments, about 2%, over the cost of paying the premium in full upfront. 

Most premium installment payments are due at the beginning of the month, though your insurance company may be flexible with the due date. Compare rates in about five minutes. Get started by entering your zip code.  

How Much Is Monthly Car Insurance?

Like any other car insurance policy, the monthly amount you will pay to cover your vehicle depends on various factors. They include:

  1. How many years have you been driving
  2. Your age
  3. Your driving record -including previous accidents, traffic accidents, and whether or not the DMV requires you to have an SR22 (needed for some high-risk drivers to prove financial responsibility).
  4. What type of car do you drive, its age, and overall value 
  5. Your credit
  6. Safety Features on your Automobile  
  7. Where you live

Advantages of Month-to-Month Car Insurance

There are plenty of benefits associated with monthly car insurance policies. The primary benefit is not being responsible for paying a large lump sum of money upfront once or twice a year. Many people don’t have $1,000 or more saved up for auto insurance, and month-to-month auto insurance plans help make coverage possible. 

You’ll appreciate having to make your premium payments in smaller, more manageable increments. After all, doesn’t it seem like you are paying less when your premium is divided over several months? Of course, you are not, but it sure feels that way.

Additional advantages include:

Flexibility: Flexibility is another great benefit. If you find a better deal elsewhere, you can take advantage of it. In this case, you don’t have to wait until the end of your coverage period to switch insurance companies. 

If you cannot immediately switch insurance companies, you can rest assured that you’ll be able to do so by the end of the month. Get a free monthly auto insurance quote online by entering your zip code and filling out an application.  

Try Out Different Policies: When you choose shorter-term coverage, you can “try out” the policy to ensure it fits your specific needs. You can alter the terms or switch insurance companies altogether if it doesn’t. If at a later time, you decide it makes more sense to make biannual or annual payments, you can do that too.

The Disadvantages of Monthly Car Insurance

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 know that month-to-month customers can cancel their policy agreement anytime, making this a less profitable option. To keep customers longer (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. It means you might not have free roadside assistance coverage or other add-ons. 
  • Driving Without Coverage: Now and then, you may forget to make a monthly 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, leaving you driving with no coverage. If you get caught driving without auto insurance, it could result in hefty fines, and in some cases, your vehicle could be towed.  

Companies that offer Auto Insurance for $30 a Month

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 provide policies for six months to 12 months. Acquiring new customers and setting up a policy is costly. There’s not much money to make in one to three-month policies. Here are several carriers that offer temporary month-to-month car insurance coverage.

Root Insurance: This company specializes in safe drivers with a low-risk driving profile. Root currently 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 on your smartphone and try out this unique insurer for one month.

Metromile: 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 available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. Try out Metromile for one month and see how easy it is for low-mileage drivers to save 40% or more. 

Allstate: If you need temporary auto insurance, Allstate is one of the only companies that offers coverage in all 50 states. Call an agent or visit the insurer’s easy-to-use website to get a quote. 

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 big payment upfront, this is a great option, allowing you to get your car on the road.
  • It is also a good option if you plan to move soon 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 simultaneously.
  • Finally, if you’re not 100% certain, you are getting the best possible deal, having month-to-month car insurance while you research your options is ideal. Remember that the longer you sign a contract, the more likely you will get a good discount on your premium.

What Are Your Other Options for Affordable Car Insurance?

There are several other alternatives if you’re not sure that monthly car insurance is the best choice in your current situation. 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. It is going to get you the most significant discount. Here are a few more options to consider.

Adding multiple cars on one policy

Another method of saving money on your coverage is to add multiple vehicles to your policy. Car insurance companies are usually happy to compensate you for bundling multiple vehicles with them. Your policy cost will be discounted even further for every car you add. On the other hand, the more cars you have on a policy, the higher your premium will be.

Paying your car off

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 that almost all lenders require that you carry comprehensive collision coverage until you have completely paid the vehicle off.

Avoid lapses in your coverage.

Be sure that your car insurance coverage never lapses. If you accidentally let your insurance expire, some companies consider you a “less than desirable” customer. After all, it indicates that you may not be the best at paying your bills and may have driven uninsured in the past.

Keep a good credit score.

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 got the best rates have a credit score of at least 650.

Keep a clean driving record and claim history.

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 consider this when determining your rate. They’ll also look at any claims you may have filed in the past three years. The drivers they will give the best rates 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.