One Month Car Insurance

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Jeff Bray
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Having car insurance is mandatory in nearly every U.S. state. This would include situations you may not consider, such as with a transfer of ownership. During these times, one-month car insurance can help car owners. However, not all insurance providers offer this benefit to car owners.

This is where we come in. In my nine years of auto insurance experience, I’ve learned how to help shoppers find the perfect car insurance policy. Through this article, we aim to help you find the best one-month car insurance coverage to fit your situation.

Key Takeaways

  • One-month car insurance is also known as temporary car insurance or short-term car insurance, and it is anything less than a standard six-month car insurance policy.

  • Nearly all car insurance providers do not sell anything less than a six-month policy, but there are ways to have car insurance for a short period of time.

  • Reasons to purchase one-month car insurance include: plans to sell your car, a child visiting from out of the area, and you are borrowing a friend’s car for a bit.

What Is 1 Month Car Insurance?

Nearly all traditional auto insurance companies do not sell one-month car insurance policies. They sell your traditional six-month or annual policies. However, there are ways to obtain short-term insurance including purchasing a term policy and cancelling it when the need for the policy is over.

One-month car insurance is usually desired when a driver is only using the car for a short period of time. Usually, when a car is in transition of ownership, a driver is looking for added protection while driving a vehicle that doesn’t belong to them, or someone else is driving a vehicle that does belong to them. When this window is closed, this insurance is no longer needed.

NOTE: One study showed that fifteen percent of consumers allowed their car insurance policies to lapse.

How Does Month-To-Month Car Insurance Work?

Month-to-month car insurance isn’t that different from your standard six-month or twelve-month auto insurance policy. You have the same protection, the same quality, backed by some of the big-name insurance companies. The difference is you are not bound by a contract and can cancel the insurance when you want to.

Here is how you get one:

Shop For Your Policy.

The primary difficulty is finding an insurance company that offers a policy. There aren’t many. The standard is six months, but there are a handful of companies that offer month-to-month car insurance.

Purchase Your Policy.

Once you find a provider, make your down payment. This may be for a weekly insurance policy or pay in full. In some cases, your payment will be for one month on an annual policy, but more on this in a moment.

Use Your Policy For Your Needs.

As temporary insurance has many needs, such as transfer of ownership, your policy works for the month you have it in place. If you have a claim, file it. If not, you are fine.

Cancel Your Policy.

Once the month is over, or the policy need has expired, you can cancel the policy.

If you have a claim during your insurance contract, there is no difference than if you had a standard six or twelve-month car insurance policy. The primary difference will be in the coverage levels selected.

Driving without insurance should never be an option. There are strict penalties for those without one-month car insurance. These can be simple fines like $200 to $500 and suspension of your license and registration and license in California to steeper fines and imprisonment as states like Alabama, Colorado, and Massachusetts have.

How Much Does Monthly Car Insurance Cost?

There are different ways to obtain one-month car insurance. While there are a handful of auto insurance companies that provide temporary car insurance, with most you will need to purchase a six-month policy and if you want to make it temporary, you will need to cancel your policy before your contract expires.

To break it down, here are some average costs of how much this would look like for monthly car insurance. We have included both one-month companies and traditional auto insurance providers.

Name of Company Type of Policy Average Monthly Availability
Metromile Pure pay-per-mile insurance $130 AZ, CA, IL, NJ, OR, PA, VA, WA
Nationwide SmartMiles Fixed monthly rate; plus, mileage $136 All, but AK, HI, LA, NC, NY, OK
Allstate MileWise Fixed-rate; plus, mileage $89 AZ, DE, FL, ID, IL IN, MD, MA, MN, MO, NJ, OH, OK, OR, PA
Geico Six-month; no cancellation fee $53 All fifty states
State Farm Six-month; no cancellation fee $84 All fifty states

*Average rates above are for a 21-year-old. Rates decline as age increases; rates increase for those younger than 21.

There are a couple of others like Noblr and Hugo that are actual one-month auto insurance providers. Hugo is not specifically a one-month auto policy, it’s more of a light switch. You turn your auto insurance on when you need it, then turn it off when you don’t.

NOTE: According to Bankrate, monthly car insurance rates rose 19% from January to December for full coverage.

When Might I Need Month-To-Month Car Insurance?

Here are different scenarios in which someone might need one-month car insurance.

Selling A Vehicle.

If you have a car you are selling, and you’re at the end of your current coverage period. You want to ensure the vehicle is covered during the selling process and until the new owner obtains insurance of their own.

TIP: When selling your vehicle, remove the license plates. If you leave them on, anything that happens to the vehicle until the new owner receives their plates can be attached to you.

Family Member Visiting.

When a child comes home for the Summer or Holiday Break, they may want to head out to see friends they haven’t seen since leaving for school. Or you may have an out-of-town relative fly in with the same intentions. Adding them to your policy temporarily would be wise should they be involved in a traffic incident.

You Are On Vacation.

When on vacation, whether it’s flying across the country or to another, you may rent a car. Chances are you will use a credit card. In most cases, you will either purchase an upgrade at the car company or your credit card will provide auto insurance, called a Collision Damage Waiver.

Borrowing A Car

In most cases, an auto insurance policy will cover anyone who gets behind the wheel. It is called permissive use. Taking it a step further, non-owner car insurance could assist especially if you regularly use the vehicle that does not belong to you.

NOTE: 91% of households own at least one vehicle. 37% own two, and 22% had three or more.

How To Find Cheap Monthly Car Insurance

Finding cheap monthly car insurance doesn’t have to be complicated. It boils down to the situation you are in and why you need the insurance. Follow these steps to find the best one-month car insurance for you:

Understand Why

Why are you purchasing the policy? The reason will help you find the right type of insurance for your situation.

1

Know Your Car

Which car are you going to insure and how long do you intend to insure it?

2

Shop Around

Find at least three companies because car insurance prices are not standard and not all will provide the type of insurance you will need; prices will also vary depending on age, gender, zip code, and personal driving record.

3

Understand The Consequences

If you are not going with a one-month car insurance company. Understand the consequences of breaking a six-month policy.

4

NOTE: In addition to your personal info, policy prices are driven by the state you live in. The Consumer Price Index reported an overall 7.7-year-over-year premium price increase.

Best Short-Term Car Insurance Companies

In the long run, one-month car insurance can be more expensive than a standard car insurance policy. It will depend on the six-month policy you are looking to purchase and the discounts received. In our research, we found a few companies that compare to one-month policies. As for cost and coverage, our best short-term car insurance companies would be:

Geico

While not a one-month car insurance provider, they are the lowest cost of those we are reviewing. They do not have a cancellation fee so at the end of your month of coverage, you can call customer service and request to cancel your policy without penalty. Another benefit is that they are available nationwide.

Allstate Milewise

Allstate comes in second due to its lower cost and coverage area. It is great for low-mileage drivers. With Milewise, you pay a daily rate plus a per mileage rate. It is great if you work from home or are a stay-at-home parent. They offer the same benefits as a traditional policy; however, they are only available in twenty-one states.

Nationwide Smartmiles

Nationwide works month to month with a cancel anytime policy. They charge a base rate, plus a variable per mile charge above that. They cover nearly all states, excluding AK, HI, LA, NC, NY, and OK.

FAQs

Does one-month car insurance exist?

Yes. However, car insurance that can be owned for only one month can be purchased from select insurance companies and is only available in a handful of states.

Can I get one-day car insurance?

With an insurance provider like Metromile, you can purchase a weekly insurance policy. You can also look at options like Hugo which allow you to turn your insurance on and off as needed. Their policies can be purchased in as little as three-day blocks.

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