120+ more*Quotes generated for Insurify users within the last 10 days. Last updated on July 10, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on July 10, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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AFCPE Accredited Financial Counselor
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Licensed auto and home insurance agent
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Media relations director for Insurance Information Institute
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Updated
Some insurers only offer six-month auto insurance policies. Others initially offer a six-month plan but will sell you a 12-month policy if you ask. And still others give you a choice of term length — six months or 12 — when you request a quote.[1]
Both six-month and 12-month car insurance terms have advantages and disadvantages. Here’s what you need to know to effectively compare six-month versus 12-month car insurance policies.
A 12-month auto policy locks in your insurance rate for a full year.
Consider a six-month auto policy if you expect changes to your driving record that could qualify you for lower premiums.
Many insurers offer a discount for paying your entire premium up front — something that may be easier to do with a shorter policy term.
A six-month auto policy provides coverage for six months before your policy renews, while a 12-month auto policy provides coverage for one year. Though the primary difference between them is policy length, rate stability is a key consideration.
Insurers generally can’t change your premium until your policy renews. A six-month policy locks in your car insurance rate for just six months. A 12-month policy locks in your rate for an entire year, providing longer protection from potential rate increases.
A handful of top insurers offer both six-month and 12-month policies, including Travelers, National General 360, Safeco, AAA, Erie, Nationwide, The Hartford, and Chubb.
Both policy terms typically allow you to pay your total premium in monthly installments. But some insurers offer pay-in-full discounts, which could be more achievable with a six-month policy.
Rates start as low as $42/mo. for minimum coverage
A six-month car insurance policy can be a good choice for drivers who expect changes to their driving record that could help them qualify for lower rates. For example, an old speeding ticket or accident might fall off your record.
Six-month policies can also be a good option for young drivers, such as those nearing age 25, who are close to reaching a lower-risk age bracket.[2]
Faster rate reductions if your driving record or overall risk profile improves
Can shop for cheaper insurance rates sooner without risking a cancellation fee
Paying in full (and getting a discount for it) can be more manageable with a six-month policy
Tickets, accidents, claims, and other adverse events can affect your rates sooner
Must track your renewal twice per year instead of just once every 12 months
Potentially two rate increases per year instead of just one
A 12-month car insurance policy can be a good fit for people who have clean driving records and value long-term rate stability. It may also appeal to busy drivers who don’t want the hassle of shopping for coverage or reviewing policy renewal offers twice per year.
Premiums won’t change for one full year
Coverage lapses may be less likely due to less frequent renewals
Premiums are often cheaper, Insurify data shows
Higher up-front cost if you choose to pay the annual premium all at once
Fewer opportunities for rate decreases if your driving record improves
Sometimes more challenging to find than six-month policies
Your choice of car insurance term will depend on several factors, including your budget, age, and driving history. Since some insurers only offer six-month terms, your choice of insurer may also limit your term options.
Factor | 6-Month Policy | 12-Month Policy |
|---|---|---|
| Average cost | $176 | $145 |
| Locking in rates | Rate doesn’t change for six months | Rate doesn’t change for 12 months |
| Renewal frequency | Every six months | Every 12 months |
| Renewal increases | Potentially two per year | Only one per year |
| Pay-in-full affordability | Lower up-front payment | Larger up-front payment |
| Flexibility | Comparison shop more frequently | Comparison shop once per year |
| Lapse risk | May be higher | Could be less |
Comparing rates through Insurify could save you up to 50%
Policy term isn’t a rating factor like your driving record, vehicle type, location, or claims history. But Insurify data indicates that monthly premiums are lower for 12-month policies. Rates from a sampling of top insurers indicate that the average monthly price for a six-month policy is nearly 18% higher than a 12-month policy.
The table below shows the average cost of six-month and 12-month auto insurance from top insurers, as well as the average price difference between the two.
Insurance Company | 6-Month Average Monthly Cost | 12-Month Average Monthly Cost | Cost Difference Per Month |
|---|---|---|---|
| Allstate | $149 | $122 | $27 |
| American Family | $160 | $132 | $28 |
| Farmers | $215 | $177 | $38 |
| GEICO | $149 | $122 | $27 |
| Liberty Mutual | $208 | $171 | $37 |
| Nationwide | $189 | $155 | $34 |
| State Farm | $108 | $89 | $19 |
| The General | $212 | $174 | $38 |
| The Hartford | $253 | $208 | $45 |
| Travelers | $193 | $159 | $34 |
| USAA | $103 | $85 | $18 |
Choosing between a six-month and 12-month policy is largely up to your budget and personal preferences. Here’s some additional information to help you decide which works best for your needs.
It depends. One option isn’t better than the other. It comes down to your financial situation and driving record. If you have a clean driving record and want rate stability, a 12-month policy could be worth it.
Drivers who expect negative factors, like a speeding ticket or car accident, to fall off their record soon might be better off with a six-month policy. That said, Insurify data show your monthly payments will likely be lower with a 12-month policy.
Insurers offer six-month policies so they can adjust rates more frequently based on market conditions, and changes to a driver’s risk profile — such as accidents, speeding tickets, and driving under the influence (DUI).
Not typically. Your car insurance company generally can’t raise your rate during the policy period unless you make specific changes. If you increase your insurance coverage, adjust your deductible, or add a new car or driver, your premium will change accordingly.
Monthly premiums tend to be lower for 12-month policies, according to Insurify data. But whether your term is six or 12 months, insurers typically offer a discount for paying your policy up front instead of in monthly payments.[3]
Yes. You can cancel a 12-month car insurance policy at any time, though the process varies by insurer. Keep in mind, some insurers may charge a cancellation fee to end your policy early.
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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AFCPE Accredited Financial Counselor
6 years experience in the personal financial industry
Featured in
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Media relations director for Insurance Information Institute
20+ years in insurance and communications
Impartial, independent expert
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
