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 due to cancelation fees.
Month-to-Month Car Insurance
Updated: July 2, 2025
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Key Takeaways
Buy a standard six-month policy and cancel when finished for month-to-month coverage. 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 178%.
Nationwide provides month-to-month 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?
Major insurers don't offer month-to-month car insurance — true temporary insurance doesn't exist. Established companies typically sell only six-month or annual policies, not 30-day insurance plans. Be cautious of websites advertising daily or weekly car insurance options — these are frequently 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.
Temporary Car Insurance Coverage Types
Car insurance comes with various temporary coverage options for short-term needs. Compare alternatives below to find suitable options for your situation.
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 |
INSTANT AUTO INSURANCE: GETTING PROOF OF COVERAGE WHEN NEEDED
GEICO, Progressive and State Farm provide immediate coverage online and digital ID cards instantly — ideal for urgent situations when you need same-day proof of insurance, like driving a newly purchased vehicle home or taking a short trip in a borrowed car.
Pros and Cons of Short-Term Auto Insurance
Each temporary insurance coverage has distinct advantages and disadvantages:
Non-Owner Car Insurance
Perfect for drivers without vehicles who still need protection. Maintains continuous insurance history and fulfills SR-22 requirements at lower rates than standard policies. This type of coverage doesn't cover damage to borrowed vehicles.
Named Driver Addition
Get comprehensive coverage through someone else's existing policy with costs tailored to your actual usage periods. This option saves money over separate policies but depends on the policyholder's continued cooperation.
Pay-Per-Mile Insurance
Perfect for drivers traveling under 500 miles monthly. Combines a minimal base rate with charges that reflect actual driving habits, potentially reducing premiums by 40%. Requires accepting telematics monitoring of driving behaviors.
Daily Rental Coverage
Ideal for ultra-short needs (one to seven days) requiring immediate protection without cancellation paperwork. Provides rental car insurance coverage through rental companies or temporary permits. Becomes expensive beyond one week compared to standard insurance options.
Month-to-Month Auto Insurance
Provides full coverage through standard six-month policies canceled early. Offers complete protection options with prorated refunds for unused periods. Sometimes requires a larger upfront payment with a potential waiting period (seven to 30 days) for refund processing.
Month-to-Month Car Insurance Cost
A month of temporary car insurance costs roughly $113, based on prorating a standard six-month policy priced at $678. When you cancel after 30 days, expect to receive around $565 as a refund.
Monthly Car Insurance Quotes by State
Car insurance rates vary widely between states due to local regulations, traffic conditions and risk factors. Understanding your state's average costs helps you evaluate whether quotes for temporary coverage are fair or inflated.
Data filtered by:Results filtered by:
Select
Coverage Level:Minimum Coverage
| Alabama | $91 | $183 |
| Alaska | $107 | $213 |
| Arizona | $131 | $261 |
| Arkansas | $101 | $203 |
| California | $149 | $297 |
| Colorado | $111 | $222 |
| Connecticut | $176 | $351 |
| Delaware | $254 | $509 |
| District of Columbia | $138 | $276 |
| Florida | $201 | $401 |
| Georgia | $115 | $230 |
| Hawaii | $91 | $181 |
| Idaho | $76 | $152 |
| Illinois | $96 | $191 |
| Indiana | $89 | $177 |
| Iowa | $63 | $127 |
| Kansas | $105 | $210 |
| Kentucky | $122 | $243 |
| Louisiana | $169 | $338 |
| Maine | $88 | $177 |
| Maryland | $169 | $337 |
| Massachusetts | $114 | $228 |
| Michigan | $230 | $459 |
| Minnesota | $121 | $243 |
| Mississippi | $102 | $205 |
| Missouri | $149 | $297 |
| Montana | $79 | $159 |
| Nebraska | $94 | $188 |
| Nevada | $209 | $419 |
| New Hampshire | $115 | $229 |
| New Jersey | $207 | $414 |
| New Mexico | $103 | $206 |
| New York | $292 | $585 |
| North Carolina | $107 | $214 |
| North Dakota | $82 | $164 |
| Ohio | $90 | $180 |
| Oklahoma | $95 | $190 |
| Oregon | $161 | $321 |
| Pennsylvania | $96 | $193 |
| Rhode Island | $152 | $304 |
| South Carolina | $190 | $380 |
| South Dakota | $73 | $147 |
| Tennessee | $86 | $173 |
| Texas | $140 | $280 |
| Utah | $133 | $265 |
| Vermont | $69 | $138 |
| Virginia | $114 | $228 |
| Washington | $146 | $292 |
| West Virginia | $118 | $237 |
| Wisconsin | $95 | $189 |
| Wyoming | $66 | $132 |
Calculate Your Temporary Car Insurance Rate
Personalized estimates give you a baseline to compare 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:
Jul 08, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 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 particularly benefits college students home for the summer, people between cars or those selling vehicles. However, how you choose to pay can significantly impact your overall costs.
Paying in Full: Best Value for Month-to-Month Car Insurance
For drivers who can manage a larger upfront payment, the full payment option offers substantial savings:
- 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
This approach ultimately saves the most money for those who can make the initial investment.
Paying Monthly: Best for Budget-Conscious Drivers
While paying monthly requires less cash upfront, it typically costs more over the life of your policy:
- Lower barrier to entry: Initial payment typically 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)
MONEYGEEK EXPERT TIP
Paying in full for one to three-month coverage periods typically provides better overall value despite the upfront cost and refund waiting period. Always verify cancellation terms and refund calculation methods before purchasing.
How Cancellation Fees Make Short-Term Policies More Expensive
Cancellation fees dramatically inflate the true cost of temporary coverage, making short-term policies much more expensive than regular coverage for the same period.
Coverage Period | Best Cost | With $50 Fee | % Cost Increase |
|---|---|---|---|
1 week | $28 | $78 | 178% |
1 month | $113 | $163 | 44% |
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 even more dramatic. A one-week policy effectively costs $11.14 per day with a cancellation fee versus just $4 per day without it.
How to Get and Cancel Month-to-Month Car Insurance
Follow these steps to secure temporary auto insurance without overpaying:
- 1
Determine if you need month-to-month car insurance
Consider these everyday situations where temporary or month-to-month insurance makes sense:
- When you're between vehicles or waiting for your new car delivery
- If you're home from college with temporary access to your family's car
- After you've moved to a new state and need coverage while researching local options
- When you're selling your vehicle and need coverage until the sale completes
- If you drive very infrequently or only during certain seasons
In certain situations, traditional month-to-month insurance approaches are unnecessarily complicated:
- Infrequent car renters: Use rental company insurance
- Frequent car renters: Get non-owner insurance
- Borrowing a friend's car: Covered by their policy with permission
- Borrowing a roommate's car: Should be listed on their policy
- Student driving parents' car: Stay on parents' policy (if living at home) or get own policy (if away)
- Need SR-22 filing: Obtain a non-owner policy
- 2
Select the appropriate coverage for your temporary needs
Start with liability coverage at 100/300/100 limits to shield your savings if you cause an accident during your transition period. Add comprehensive coverage to protect against theft and weather damage, and include collision insurance to cover repair costs after accidents. Choose deductibles that match what you could afford to pay out-of-pocket — most drivers find $500 to $1,000 works best.
Consider additional protection based on your circumstances:
- Gap insurance protects you when financing, keeping you from owing more than your car's value
- Rental coverage provides security during short trips
- Uninsured motorist coverage is valuable in areas with many uninsured drivers
- Rental reimbursement keeps you mobile while your car is being repaired
- Roadside assistance offers peace of mind during travels
- 3
Compare quotes from multiple insurers
Comparing insurance quotes can save you 30% to 48% on temporary coverage. Shop multiple providers to compare coverage limits, deductibles, discounts and payment options. Look for insurers without cancellation fees and watch out for hidden charges like minimum earned premiums.
- 4
Plan your cancellation strategy
Canceling your month-to-month car insurance needs as much attention as buying it. Good timing helps maximize your refund and prevents issues affecting your insurance history.
Follow these steps to cancel properly and get back any unused premium:
- Contact your insurer through its preferred method (phone, online or agent)
- Provide your policy number and specific end date
- Confirm your prorated refund amount before finalizing
- Get written cancellation confirmation with the effective date
- Allow seven to 30 days for refund processing
- Contact your state insurance commissioner if refund problems occur
- 5
Prepare the necessary documentation
Having the right paperwork ready speeds up buying and canceling month-to-month car insurance. Good preparation reduces processing time, prevents coverage delays and simplifies refunds when you cancel.
Have these documents ready:
- Driver's license and social security number
- Bank account information for payments and refunds
- Vehicle details (VIN, registration, year/make/model)
- Specific start/end dates and coverage limits
Best Month-to-Month Car Insurance Companies
After analyzing thousands of quotes and customer reviews, Nationwide earns our top spot for month-to-month car insurance with a 93 out of 100 MoneyGeek score. It offers straightforward cancellation, prompt premium refunds and responsive customer service.
Best OverallNationwide
MoneyGeek Score:
93/ of 100
Monthly Premium$105
Annual Premium$1,260
Overview
Nationwide leads the industry for month-to-month insurance. Its hassle-free cancellation process delivers full prorated refunds without hidden fees, while its digital platform enables instant activation with 24/7 support. Nationwide's SmartRide program unlocks discounts within just 30 days — perfect for temporary customers.
Best for Personalized In-Person ServiceState Farm
MoneyGeek Score:
88/ of 100
Monthly Premium$109
Annual Premium$1,308
Overview
State Farm excels for drivers preferring personalized guidance through local agents who customize short-term policies with zero cancellation penalties. Its Drive Safe & Save program delivers discounts within just two weeks.
Best for Premium Coverage OptionsAllstate
MoneyGeek Score:
71/ of 100
Monthly Premium$133
Annual Premium$1,596
Overview
Allstate stands out for drivers seeking comprehensive customization with day-one access to premium features that typically require long-term loyalty. Its perfect coverage score reflects strong policy options, including specialty protection like rental reimbursement and sound system coverage.
Allstate's accident forgiveness activates immediately rather than after years, while Drivewise gives discounts within 30 days. Its dedicated cancellation advocates ensure prorated refunds within seven to 10 days.
Best for Digital-First ExperienceGEICO
MoneyGeek Score:
62/ of 100
Monthly Premium$100
Annual Premium$1,204
Overview
GEICO excels for tech-savvy drivers seeking streamlined temporary coverage with the lowest monthly average premium of $100. Its fully digital platform enables same-day activation with instant ID cards and industry-leading 48-hour refund processing — 93% faster than competitors' typical seven to 14-day wait.
MONEYGEEK EXPERT TIP
Choose insurers with instant digital IDs for immediate coverage. Secure new policies before canceling existing ones — gaps trigger 10% to 30% premium hikes lasting years. Request written cancellation terms verifying zero fees and no waiting periods.
Month-to-Month Auto Insurance: Bottom Line
Temporary car insurance bridges coverage gaps during life transitions. By understanding your needs and comparing options carefully, you'll maintain protection without overpaying during short-term periods.
Temporary Car Insurance: FAQ
Below are answers to common questions about month-to-month car insurance to help you understand how it works and how to get one.
Can you get month-to-month car insurance?
Insurers don't offer policies that last just one month. For short-term coverage, the best option is to buy a standard six-month or one-year policy. You can cancel the plan early when you no longer need it.
What are the alternatives to month-to-month car insurance?
Non-owner car insurance is a good alternative for short-term coverage. It provides 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 doesn't directly impact future rates if you maintain continuous coverage without gaps between policies. However, 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 typically 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.
Is it possible to get car insurance for one month?
Yes, it's possible to get car insurance for one month through temporary or short-term policies. Many insurers offer month-to-month coverage that you can cancel after the first month. Some companies also provide specific short-term policies for situations like borrowing a vehicle or temporary relocations.
Can you pay 6 months car insurance monthly?
Most insurers let you split 6-month car insurance into monthly payments, though they may charge a small processing fee (typically $3-8 per month). This gives you a lower overall rate than true month-to-month policies while maintaining monthly payment convenience.
Do you pay for car insurance a month in advance?
Yes, you typically pay for car insurance a month in advance. Your January payment covers January's coverage, and so on. This advance payment system ensures continuous coverage and is standard across the insurance industry.
Can I get month-to-month car insurance if I can't pay this month?
If you can't pay car insurance this month, contact your insurer immediately about hardship options. Many companies offer payment deferrals, extended due dates, or payment plans that can help you maintain coverage while managing financial difficulties.
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How We Rated the Best Month-to-Month 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.
Overview
MoneyGeek collects data from reliable sources to assess insurers' financial stability and market share. We analyze premiums and ratings for large and small providers to identify the best and cheapest car insurance options nationwide and by state.
Data Acquisition and Depth
Our scores are based on industry-leading evaluations, including J.D. Power, AM Best and NAIC data. We collaborated with Quadrant Information Services to gather 2,118,312 quotes from 67 insurers across 897 ZIP codes.
Driver Profile
MoneyGeek calculates average rates using a standard profile. This profile adjusts for factors like age, location, driving history, car type, coverage level, mileage and military affiliation.
The standard profile includes:
- 40-year-old male
- 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
MoneyGeek Scoring Methodology
MoneyGeek assigns a composite score out of 100 based on the following weightings:
- Customer and claims satisfaction (45%): Includes NAIC complaint index reviews and CRASH Network Claims Scores to assess customer satisfaction
- 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
Learn more about MoneyGeek’s car insurance methodology.
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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.