Enter your ZIP Code to get insurance quotes in your area
Wrong zip code

Monthly Auto Insurance

Most car insurance companies will offer people the option to pay month by month for their policy. Other options often include paying biannually, or annually. In many cases, skipping over the month-to-month option to select the biannual or annual option is what people do. This is because you can save a lot of money in the long run by paying with these two options.

About Month-to-Month Car Insurance Policies

Paying for your car insurance one month at a time can be a huge convenience because you do not have to pay a large sum in advance. Considered the pros and cons of each way of making payments, and come up with the best decision for your unique situation. Each person has different needs, and not everyone can afford to make a biannual or annual payment for their car insurance. Each way of paying has distinct advantages and disadvantages, which should be considered.

Monthly, Bi-Annual, or Yearly: How Do You Choose?

Each of these policies has its own pros and cons, with yearly policies saving the most money overall and monthly policies providing the most amount of convenience. Weighing the pros and cons of each policy is the best way to determine which payment plan is best for you.


For people who may decide to move or switch car insurance providers, paying for a policy that is month-to-month may be your best option. This can also be a good option for people who are looking to change vehicles shortly.

In most states, you can change policies at any time and are required to be given a refund for the unused portion of your car insurance plan. Some companies are better at returning this more efficiently than others, but it is smart to note whether your state requires this refund. If it does, you can save money on your car insurance policy and still be able to switch at any point in time easily. This can allow you to continue to shop around for better rates and better companies.


The rates that people pay for a month-to-month policy are often quite a bit higher than the prices people will get for paying biannually or annually. It mostly comes down to guaranteeing a car insurance company your business for a more extended period. The longer you pay for, the less expensive the policy ends up being per month. The best deal on your automobile insurance plan will be the one that you pay the most extended amount of time on in advance.

Another con that comes up for month-to-month car insurance is that you must remember to pay it each month. Car insurance providers cancel policies relatively quickly if people do not make their payments on time. Because of this, people who forget to make their payment may end up driving without insurance coverage and not even knowing it. The car insurance companies do send a notification, but that notification does not always get opened or read.


Car insurance companies offer substantial incentives to people who pay for their policy in advance. These savings can be hundreds of dollars for each six month period. If it is possible to pay for your plan in advance, and you do not have an intention to buy a new car or switch companies during the term, it likely makes sense to pay for your policy upfront. Month-to-month payments can be hugely convenient for people who do not have the funds to pay for their policy in advance. It also provides additional flexibility when it comes to purchasing a new vehicle or changing car insurance companies. Weighing the advantages and disadvantages of each type of payment option will put you on the best position to make the choice that is right for you. Many websites allow people to easily see the different rates and the total amount of money that can be saved by using the different types a payment options.

5.0out of 522 user reviews
See also
Maine is a beautiful state that has the slogan of Vacationland...
Most people never have to deal with the terms stacked auto insurance...
​ The finding of the most reasonable home insurance rates involves a...
Start now and save »
Wrong zip code