Major insurers don't offer month-to-month car insurance; true temporary insurance doesn't exist. Established companies sell only six-month or annual policies, not 30-day insurance plans. Be cautious of websites advertising daily or weekly car insurance options because these are often scams that leave you driving without proper coverage. Your best option depends on your situation, how long you need coverage, whether you own a vehicle and your driving frequency.
Month-to-Month Car Insurance
Updated: October 14, 2025
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Key Takeaways
Month-to-month car insurance offers a flexible alternative to traditional six-month or annual policies. If you need temporary coverage, this option lets you adjust your protection without long-term commitments, though you'll pay more for that flexibility.
To get month-to-month car insurance, buy a standard six-month policy and cancel when finished. True "monthly" car insurance plans don't exist, but this provides temporary coverage.
Pay your premium in full to save money by avoiding installment fees of $5 to $15 per payment and qualifying for 5% to 10% discounts. A $50 cancellation fee increases the cost of one-week coverage by 179%.
Nationwide provides the best month-to-month car insurance due to its flexibility with no cancellation penalties and quick refund processing. Other good options include State Farm, Allstate and GEICO, each offering different advantages for short-term coverage.
What Is Month-to-Month Car Insurance?
Temporary Car Insurance Coverage Types
Temporary car insurance, or short-term auto insurance, provides flexible coverage options for drivers who need month-to-month or 30-day policies. Whether you're looking for affordable daily or monthly coverage, comparing the options below can help you find the right coverage for your needs.
Coverage Type | Best For | Key Benefit | Duration Flexibility |
|---|---|---|---|
Standard policy/Early cancellation | Temporary car owners | Full coverage with a refund | 1–6 months |
Non-owner | Non-owners who drive occasionally | Affordable liability coverage | 1–6 months |
Added driver | Regular borrowers of the same vehicle | Cost-effective for frequent use | 1–6 months |
Usage-based | Very infrequent drivers | Pay for actual mileage | 1–6 months |
Rental car | 1 to 7-day needs | Convenient for brief driving | 1–7 days |
Permissive use | Brief borrowing of someone's car | No additional cost | 1–7 days |
Non-owner liability | Brief driving without ownership | Minimal coverage for short needs | 1–30 days |
Temporary named driver | Short-term access to someone's car | Leverages existing policy | 1–30 days |
GETTING SAME-DAY TEMPORARY CAR INSURANCE
GEICO, Progressive and State Farm provide immediate temporary car insurance with digital ID cards available online within minutes. You can start coverage and receive proof of insurance instantly, perfect for driving a newly purchased vehicle home or borrowing a car for a short trip. These insurers also offer 30-day car insurance policies with no waiting period, so you're covered the moment you need it.
Pros and Cons of Short-Term Auto Insurance
The main advantage is paying only for coverage when needed, with options including month-to-month policies, non-owner insurance and pay-per-mile plans. The primary drawback is higher daily rates compared to standard annual policies.
Month-to-Month Auto Insurance
Month-to-month auto insurance offers full coverage with standard six-month policies that you can cancel early. You'll get comprehensive protection along with prorated refunds for any unused coverage. The disadvantages include larger upfront payments and waiting periods of seven to 30 days for refund processing after cancellation.
Non-Owner Car Insurance
Non-owner car insurance provides liability protection for drivers who don't own a vehicle. This temporary coverage keeps your insurance history intact and meets SR-22 requirements at lower rates than standard policies. But non-owner policies don't cover damage to borrowed vehicles; coverage only includes liability protection.
Pay-Per-Mile Insurance
Pay-per-mile insurance works for drivers who travel less than 500 miles each month. This usage-based coverage offers a low base rate combined with charges based on actual miles driven, which can lower premiums by up to 40%. To qualify for these reduced rates, you must agree to telematics monitoring of your driving habits.
Daily Rental Coverage
Daily rental coverage offers short-term protection for one to seven days. You can buy coverage from rental companies for immediate protection without needing to cancel a policy. But compared with standard month-to-month policies, daily rental car coverage gets expensive after one week.
Named Driver Addition
Adding a named driver offers comprehensive coverage through another person's existing policy. This temporary car insurance option costs less than separate policies because you're only added for specific periods. Your coverage depends on the policyholder maintaining their policy and cooperating during your coverage period.
Month-to-Month Car Insurance Cost
Month-to-month car insurance costs approximately $113 based on prorating a standard six-month policy priced at $678. You'll receive around $565 as a refund when you cancel temporary car insurance after 30 days.
Monthly Car Insurance Quotes by State
Monthly car insurance quotes vary between states due to local regulations, traffic patterns and risk factors. Compare your state's average costs below to determine if the quotes you receive for short-term coverage are competitive.
Data filtered by:Results filtered by:
Select
coverage:Minimum Coverage
| Alabama | $1 | $8 | $30 | $91 |
| Alaska | $1 | $9 | $36 | $107 |
| Arizona | $1 | $11 | $44 | $131 |
| Arkansas | $1 | $8 | $34 | $101 |
| California | $2 | $12 | $50 | $149 |
| Colorado | $1 | $9 | $37 | $111 |
| Connecticut | $2 | $15 | $59 | $176 |
| Delaware | $3 | $21 | $85 | $254 |
| District of Columbia | $2 | $12 | $46 | $138 |
| Florida | $2 | $17 | $67 | $201 |
| Georgia | $1 | $10 | $38 | $115 |
| Hawaii | $1 | $8 | $30 | $91 |
| Idaho | $1 | $6 | $25 | $76 |
| Illinois | $1 | $8 | $32 | $96 |
| Indiana | $1 | $7 | $30 | $89 |
| Iowa | $1 | $5 | $21 | $63 |
| Kansas | $1 | $9 | $35 | $105 |
| Kentucky | $1 | $10 | $41 | $122 |
| Louisiana | $2 | $14 | $56 | $169 |
| Maine | $1 | $7 | $29 | $88 |
| Maryland | $2 | $14 | $56 | $169 |
| Massachusetts | $1 | $10 | $38 | $114 |
| Michigan | $3 | $19 | $77 | $230 |
| Minnesota | $1 | $10 | $40 | $121 |
| Mississippi | $1 | $9 | $34 | $102 |
| Missouri | $2 | $12 | $50 | $149 |
| Montana | $1 | $7 | $26 | $79 |
| Nebraska | $1 | $8 | $31 | $94 |
| Nevada | $2 | $17 | $70 | $209 |
| New Hampshire | $1 | $10 | $38 | $115 |
| New Jersey | $2 | $17 | $69 | $207 |
| New Mexico | $1 | $9 | $34 | $103 |
| New York | $3 | $24 | $97 | $292 |
| North Carolina | $1 | $9 | $36 | $107 |
| North Dakota | $1 | $7 | $27 | $82 |
| Ohio | $1 | $8 | $30 | $90 |
| Oklahoma | $1 | $8 | $32 | $95 |
| Oregon | $2 | $13 | $54 | $161 |
| Pennsylvania | $1 | $8 | $32 | $96 |
| Rhode Island | $2 | $13 | $51 | $152 |
| South Carolina | $2 | $16 | $63 | $190 |
| South Dakota | $1 | $6 | $24 | $73 |
| Tennessee | $1 | $7 | $29 | $86 |
| Texas | $2 | $12 | $47 | $140 |
| Utah | $1 | $11 | $44 | $133 |
| Vermont | $1 | $6 | $23 | $69 |
| Virginia | $1 | $9 | $38 | $114 |
| Washington | $2 | $12 | $49 | $146 |
| West Virginia | $1 | $10 | $39 | $118 |
| Wisconsin | $1 | $8 | $32 | $95 |
| Wyoming | $1 | $5 | $22 | $66 |
Calculate Your Temporary Car Insurance Rate
Personalized estimates for temporary coverage give you a baseline to compare your month-to-month options without committing to applications. MoneyGeek's car insurance calculator helps determine your potential costs without sharing personal information.
Month-to-Month Car Insurance Calculator
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
$192
High
$139
Average
$87
Low
Rates updated:
Oct 18, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 |  State Farm | 83 /of 100 | $118 |
| 4 |  Travelers | 83 /of 100 | $129 |
| 5 |  Progressive | 79 /of 100 | $133 |
| 6 |  Farmers | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Is Month-to-Month Car Insurance Cheaper?
Month-to-month car insurance can be cheaper than standard policies when you need coverage for only a short period. Paying for the months you need instead of a full six-month term eliminates wasted premium costs.
This approach benefits college students temporarily home for the summer, people between cars or those selling vehicles. But how you choose to pay can impact your month-to-month car insurance's overall costs.
Paying in Full: Best Value for Month-to-Month Car Insurance
Paying in full for one to three-month coverage periods provides better overall value despite the upfront cost and refund waiting period. Always verify cancellation terms and refund calculation methods before purchasing month-to-month car insurance.
- Discounts: Save 5% to 10% with payment-in-full discounts ($30 to $60 on six-month policies)
- No extra fees: Eliminate all monthly installment fees ($5 to $15 per payment)
- Money-back guarantee: Receive prorated refunds for unused coverage (minus cancellation fees)
- Refund timeline: Wait seven to 30 days for refund processing
- Initial investment: Higher initial cash outlay required
Paying Monthly: Best for Budget-Conscious Drivers
While paying monthly requires less cash upfront, it costs more over the life of your policy:
- Lower barrier to entry: Initial payment only 1/6 of the total policy cost
- Financial flexibility: Better short-term cash flow management
- Simple cancellation: No refund waiting period when you cancel
- No tied-up funds: No large sum tied up during refund processing
- Total cost increase: Pay 10% to 15% more overall due to:
- Monthly installment fees: $5 to $15 per payment
- Missing out on payment-in-full discounts: 5% to 10% savings lost
How Cancellation Fees Make Short-Term Policies More Expensive
Cancellation fees inflate the true cost of temporary coverage. A one-month standard policy costs $113 when prorated from a $678 six-month premium. With a $50 cancellation fee, your effective monthly rate jumps to $163, a 44% increase. This means you're paying $5.43 per day instead of $3.77 for the same coverage.
For ultra-short periods, the difference becomes more dramatic. A one-week policy effectively costs $11.14 per day with a cancellation fee versus just $4 per day without it.
Coverage Period | Best Cost | With $50 Fee | % Cost Increase |
|---|---|---|---|
1 week | $28 | $78 | 179% |
1 month | $113 | $163 | 44% |
How to Get and Cancel Month-to-Month Car Insurance
Getting month-to-month car insurance involves five steps: assess whether you need temporary coverage, select appropriate coverage types, gather required documentation, compare quotes from multiple insurers and plan your cancellation to maximize refunds. This process takes one to two days and can save you 30% to 48% compared to purchasing without comparing options.
- 1
Determine if you need month-to-month car insurance
Month-to-month auto insurance is suitable for several temporary situations:
- You're between vehicles or waiting for your new car to arrive
- You're home from college with temporary access to your family's car
- You've moved to a new state and are researching local insurers
- You're selling your vehicle and need coverage until the sale is finalized
- You drive infrequently or only during specific seasons
Some situations don't require traditional month-to-month policies:
- Infrequent car renters: Purchase rental company insurance instead
- Frequent car renters: Buy non-owner car insurance for better rates
- Borrowing a friend's car: The friend's policy covers you with permission
- Borrowing a roommate's car: Add yourself as a named driver on the roommate's policy
- Students driving parents' car: Remain on your parents' policy if living at home
- Need SR-22 filing: Purchase non-owner car insurance with SR-22
- 2
Select the right coverage for your temporary needs
Start with liability coverage at 100/300/100 limits to protect your assets if you cause an accident. Add comprehensive coverage for theft and weather damage protection. Include collision insurance to cover repair costs after accidents. Choose deductibles between $500 and $1,000 based on what you can afford out-of-pocket. Consider these additional coverages for temporary car insurance:
- Gap insurance: Protects you from owing more than your car's value when financing
- Uninsured motorist coverage: Essential in states with many uninsured drivers
- Rental reimbursement: Covers rental car costs while your vehicle is being repaired
- Roadside assistance: Provides towing and emergency services during your coverage period
- 3
Prepare the necessary documentation
Having documents ready speeds up purchasing temporary auto insurance. Organized paperwork reduces processing delays and prevents coverage gaps. Gather these documents before requesting quotes:
- Driver's license and Social Security number
- Bank account information for automatic payments and refunds
- Vehicle details, including VIN, registration, year, make and model
- Specific start and end dates for your temporary car insurance coverage
- Current coverage information if switching from another policy
- 4
Compare quotes from multiple insurers
Comparing month-to-month auto insurance quotes can save you 30% to 48% on temporary coverage. Request quotes from at least three insurers to compare coverage limits, deductibles, available discounts and payment options. Look for providers without cancellation fees, and verify there are no hidden charges like minimum earned premiums that could reduce your refund.
- 5
Plan your cancellation strategy
Timing your cancellation correctly maximizes your refund and protects your insurance history. Cancel your month-to-month car insurance by following these steps:
- Contact your insurer via phone, online portal or agent
- Provide your policy number and desired cancellation date
- Confirm your prorated refund amount before completing the cancellation
- Request written confirmation of cancellation showing the effective date
- Wait seven to 30 days for your refund to be processed to your payment method
- Contact your state insurance commissioner if you don't receive your refund
Best Month-to-Month Car Insurance Companies
Nationwide earns our top spot for the best month-to-month car insurance company with a 93 out of 100 MoneyGeek score, based on our analysis of thousands of quotes and customer reviews. It offers straightforward cancellation, prompt premium refunds and responsive customer service.
Best OverallNationwide
MoneyGeek Score:
93/ 100
Monthly Premium$105
Annual Premium$1,260
Overview
Nationwide ranks first for month-to-month car insurance with straightforward cancellation that provides full prorated refunds and no hidden fees. Nationwide offers instant coverage activation through its digital platform with 24/7 customer support. The SmartRide program provides discounts within 30 days for drivers who need flexible coverage options.
Best for Personalized In-Person ServiceState Farm
MoneyGeek Score:
88/ 100
Monthly Premium$109
Annual Premium$1,308
Overview
State Farm ranks as the best month-to-month car insurance provider for drivers who want personalized service from local agents. State Farm agents customize policies with no cancellation penalties for short-term coverage needs. The Drive Safe & Save program offers discounts within two weeks, providing quick savings.
Best for Premium Coverage OptionsAllstate
MoneyGeek Score:
71/ 100
Monthly Premium$133
Annual Premium$1,596
Overview
Allstate provides the best month-to-month car insurance for drivers who need comprehensive customization and immediate access to premium features. Allstate's strong coverage options include specialty protections like rental reimbursement and sound system coverage that other insurers reserve for long-term customers. Allstate's accident forgiveness starts immediately instead of requiring years of loyalty. The Drivewise program offers discounts within 30 days. Allstate's cancellation team processes prorated refunds within seven to 10 days.
Best for Digital-First ExperienceGEICO
MoneyGeek Score:
62/ 100
Monthly Premium$100
Annual Premium$1,204
Overview
GEICO ranks as the best month-to-month car insurance provider for drivers who prefer digital-only service. GEICO offers the lowest average premium at $100 monthly with same-day coverage activation and instant digital ID cards. GEICO processes refunds within 48 hours, completing cancellations in two days compared to the seven to 14-day industry standard.
HOW TO CHOOSE THE BEST MONTH-TO-MONTH CAR INSURANCE COMPANY FOR YOU
Compare quotes from at least three month-to-month car insurance companies to find the best rates and terms. Evaluate each insurer's cancellation policies, refund processing times and digital services before purchasing. Choose temporary car insurance providers with no cancellation fees, instant digital ID cards and refund guarantees to avoid gaps that can increase your premiums by 10% to 30%.
Month-to-Month Temporary Auto Insurance: Bottom Line
Month-to-month car insurance offers flexible short-term coverage without long-term commitments. You'll pay higher daily rates compared to standard six-month policies. However, the ability to cancel anytime with prorated refunds makes it useful for situations like vehicle switching, seasonal driving or waiting for better rates.
Before buying month-to-month auto insurance, compare quotes from several insurers. Rate differences can exceed 40% between providers. Look for companies that provide instant digital ID cards, no cancellation fees and quick refund processing. To avoid gaps and potential premium increases, purchase your new policy before canceling your current coverage.
Start by requesting quotes from GEICO, Progressive, State Farm and Nationwide to find the best month-to-month car insurance rates for your needs.
Monthly Auto Insurance: FAQ
We answer common questions about month-to-month car insurance to help you understand how it works and how to get coverage.
Can you get month-to-month car insurance?
Month-to-month car insurance isn't available as standalone policies from insurers. For short-term coverage, buy a standard six-month or one-year policy and cancel it early when you no longer need coverage.
What are the alternatives to month-to-month car insurance?
Non-owner car insurance is a good alternative for short-term coverage, providing protection for drivers who don't own a vehicle. Another option is to be added as a driver to someone else's policy.
What is the best company for month-to-month car insurance?
According to MoneyGeek's analysis, Allstate, GEICO, Nationwide and State Farm are the top options for the average driver. These providers balance service quality and affordability, and they don't charge cancellation fees.
Does canceling a policy early affect future insurance rates?
Canceling a policy early doesn't directly impact future rates if you maintain continuous coverage without gaps between policies. But allowing even a brief lapse can increase premiums by 10% to 30% for several years.
How do monthly payments differ from policy terms?
Monthly payments are just an installment plan for longer-term policies. They incur $5 to $15 fees per payment, while policy terms define the actual coverage period and contract. Paying in full often earns a 5% to 10% discount.
What are the risks of ultra-short-term coverage (1–7 days)?
Minimum earned premium requirements force insurers to keep 10% to 30% of the six-month premium regardless of cancellation timing, making a one-week effective period cost $67 to $203 instead of just $28. Some insurers also impose waiting periods before certain coverages take effect.
How can international visitors get temporary car insurance?
International visitors can choose between rental car insurance (best for trips under 30 days), specialized visitor policies from companies like Visitors Coverage (for one to six-month stays) or being added to a U.S. resident's policy. Most options require a valid international driver's license.
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How We Rated the Best Daily Car Insurance Car Insurance Companies
Why Trust MoneyGeek?
We rely on trusted data sources like Quadrant Information Services and state insurance departments to analyze insurer costs and performance. We also incorporate insights from J.D. Power, AM Best and the National Association of Insurance Commissioners (NAIC) to evaluate market share, financial stability and service quality.
Our Research Approach
Finding month-to-month car insurance that balances flexibility with affordability requires comparing providers across multiple dimensions: not just premium costs but also cancellation policies, refund processing times and coverage quality. We designed our research to identify which insurers offer the best combination for drivers needing short-term coverage.
Data Collection and Analysis
We collaborated with Quadrant Information Services to gather 2,118,312 quotes from 67 insurers across 897 ZIP codes. We analyzed premiums and ratings for large and small providers to identify the best and cheapest car insurance options nationwide and by state.
We assigned composite scores out of 100 based on the following weightings:
- Customer and claims satisfaction (45%): Includes NAIC complaint index reviews and CRASH Network Claims Scores
- Claim satisfaction (30%): Evaluates claim-handling experiences using NAIC and CRASH Network data
- Available coverages (20%): Scores insurers on essential and optional coverage offerings, using a weighted system to prioritize value and unique protections
- Financial stability (5%): Assesses an insurer's ability to pay claims during financial hardship, using AM Best ratings
This weighting prioritizes service quality and claims handling---the factors that matter most when you need to cancel quickly and receive prompt refunds.
Sample Driver Profile
MoneyGeek calculates average rates using a standard profile adjusted for factors like age, location, driving history, car type, coverage level, mileage and military affiliation.
The standard profile includes:
- 40-year-old man
- Clean driving record
- 100/300/100 liability coverage limits
- Comprehensive and collision coverage with a $1,000 deductible
- 2010 Toyota Camry LE
- 12,000 miles driven annually
Learn more about MoneyGeek's car insurance methodology.
Temporary Car Insurance: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.