Six-Month vs. 12-Month Car Insurance

Six-month car insurance policies benefit many drivers. If you want to try different insurers, you can switch after every term to find one that suits you best.

Younger drivers getting car insurance benefit from short-term policies, especially if they have a birthday in the next six months. As younger or first-time drivers seeking car insurance maintain a clean driving record, their premiums often decrease each term. Teen drivers face higher rates due to inexperience and statistical risk factors, with rates varying by state and insurer.

Six-month policies also benefit drivers who've improved their credit score, since car insurance for drivers with poor credit costs more (some states prohibit or limit using credit scores for insurance rates). Similarly, drivers who have had infractions like speeding tickets removed from their records benefit from rate revisions at their next renewal.

A 12-month term suits some drivers better than others. This duration benefits drivers who maintain a clean driving record and want to avoid twice-yearly premium increases. Choose this option if you prefer rate consistency over flexibility.

These policies benefit drivers who can afford to pay for an entire policy upfront, since some insurers offer full-payment discounts. They're also ideal for low-income individuals looking for car insurance who can't handle rate increases twice yearly. Locking in a single rate for the whole year protects you if you get into an accident.

If you expect your credit score to drop within the year, buy a 12-month policy. Insurers won't factor the lower score into your rates for at least another year, giving you time to improve it before renewal. Some states prohibit or limit using credit scores for insurance rates.

Six-month car insurance policies work well for drivers who value flexibility and want to monitor rate changes more often. Here are the main considerations for shorter-term policies:

If you want predictable premiums and less hassle with renewals, a 12-month car insurance policy might fit better. Below are the main advantages and disadvantages of choosing a longer-term plan:

A six-month car insurance policy often comes with lower upfront costs, while a 12-month policy can offer price stability and protection from mid-year rate hikes. Comparing both options helps you determine which provides better value based on your budget, driving record, and coverage needs.

The average cost of a six-month car insurance policy varies based on factors like your driving record, location and coverage level. Below are the costs for six-month policies with minimum coverage and full coverage.

*These rates represent the cost of car insurance for a year calculated with Quadrant Information Services divided in half. Real six-month policies may have different pricing structures. Your actual rates may vary based on individual circumstances.

12-month car insurance policies typically cost more. Take a look at average costs by company for 12-month car insurance below.

*These rates represent the cost of car insurance for a year calculated with Quadrant Information Services. Your actual rates may vary based on individual circumstances.

The choice between a six-month and 12-month car insurance policy comes down to your need for flexibility versus stability. A six-month policy offers more frequent chances to adjust or switch, while a 12-month policy provides rate consistency and fewer renewals. Consider your driving habits, financial goals, and how often you want to reassess your coverage before deciding.

Choosing between six-month and 12-month car insurance policies can impact your premium stability, flexibility, and how often you renew. Below, we answer common questions about these two policy terms to help you decide which fits your needs best.

Why Trust MoneyGeek? 
MoneyGeek compares and ranks financial products to help you make the best financial decisions. Our research analyzed data from Quadrant Information Services and state insurance departments using various driver profiles to understand the rates for six-month vs. 12-month policies across ZIP codes in the United States.

Study Overview
MoneyGeek calculated the average cost of liability insurance in each state by gathering rates from car insurance companies and calculating the national average, as well as the state averages for liability-only coverage. We used sample profiles of drivers with clean records and drivers with accidents or tickets.

We also analyzed how liability insurance rates compare to full coverage rates to determine whether buying a higher level of protection is worth the cost.

Data Sources and Depth
MoneyGeek gathered data from Quadrant Information Services and state insurance departments. Our study analyzed 83,056 quotes from 46 companies across 473 ZIP codes, considering various driver profiles.

Driver Profile
We used the following driver profile to determine the average annual car insurance costs:

• 40-year-old male
• Drives a Toyota Camry LE
• Clean driving record
• Excellent credit score
• 12,000 miles driven annually

To calculate the average cost for motorists in the United States with varying coverage requirements, we adjusted this profile by region, coverage type and amount.

Coverage Levels and Deductibles Explained
This study compared the premiums between six- and 12-month policies. We reviewed coverages and deductibles for each policy type and collected quotes from various insurance companies.

A deductible is a specific amount of money you agree to pay out of your pocket before the insurance company pays for a claim. The higher the deductible, the lower your monthly premium will be. Liability coverage typically doesn't have deductibles.

Coverage can include liability, collision and comprehensive. Comprehensive and collision insurance, often called "full coverage" or 100/300/100 insurance, provides the most financial protection.

100/300/100 stands for:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability

For our sample driver, we used 100/300/100 comprehensive and collision coverage with a $1,000 deductible when calculating national averages.

50/100/50 means:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability

While gathering state-specific data, we selected a sample driver with 50/100/50 comprehensive and collision coverage and a $1,000 deductible.

Learn more about MoneyGeek's methodology.