Six-month car insurance refers to a policy that provides coverage in increments of 6 months instead of 12 months. Policyholders can pay monthly or make one lump-sum payment at the start of the 6-month period.
Every 6 months, your insurance company will reassess your risk level and recalculate a new premium. This can be better than a 12-month policy if you expect your rates to decrease soon due to something like a driving violation falling off your record.
Key Things to Know About 6-Month Car Insurance
- What is it? Six-month car insurance is a policy that lasts for 6 months and then usually renews automatically unless you cancel it.
- How do you pay? You can pay monthly or make one lump-sum payment for your 6-month car insurance policy. If you make the lump-sum payment, some insurers offer a discount.
- When do rates change? Every 6 months, your insurance company will reevaluate your risk level, which may change your insurance rate.
- Can you get a shorter policy? Six months is usually the shortest time frame available for a standard car insurance policy, though you can still cancel a policy early and switch companies.
- How much does it cost? A 6-month car insurance policy costs an average of $336 for minimum coverage.
- Should you get it? A 6-month policy is a good idea if you want to compare car insurance quotes more often in the hopes of getting a lower rate.
How Does a 6-Month Car Insurance Policy Work?
A 6-month car insurance policy works the same way as other standard car insurance policies, by providing coverage when you are involved in an accident. A 6-month policy includes your state’s minimum required coverage, and you can add collision and comprehensive insurance to your policy for full coverage.
When you purchase a 6-month policy, you can choose to pay your insurance premium monthly or pay upfront with one payment at the start of the policy. Some insurers may offer a discount if you pay your insurance premium in full at the start of the policy.
When the 6 months are almost over, your insurance company will send a renewal letter with an updated premium for another 6 months. Typically, you can pay your premium to continue coverage or cancel the policy before it renews. Some states may require the insurance company to have you sign documents before your policy can be renewed.
To learn more, check out WalletHub’s guide on how car insurance works.
How Much Does 6-Month Car Insurance Cost?
A 6-month car insurance policy costs an average of $336 for minimum coverage, though the exact price you will pay varies by company. Companies use several factors to determine your rate such as your age, driving record and car, as well as the coverage limits and deductibles you choose. Comparing quotes from different companies can help you get the best rates.
Average 6-Month Car Insurance Premiums
| Company | Minimum Coverage | Full Coverage |
|---|---|---|
| GEICO | $234 | $978 |
| USAA | $246 | $912 |
| AAA | $264 | $1,410 |
| Progressive | $276 | $1,134 |
| Mercury | $300 | $1,008 |
| Travelers | $318 | $1,266 |
| State Farm | $360 | $1,314 |
| The Hartford | $384 | $1,422 |
| Liberty Mutual | $546 | $1,710 |
To learn more, check out WalletHub’s guide on the average cost of car insurance.
What Is a Good 6-Month Premium for Car Insurance?
A good 6-month premium for car insurance is anything under the national average of $336 for minimum coverage or $1,059 for full coverage that you can afford to pay while still getting enough coverage to meet your needs. There are several factors that will affect what you pay for car insurance, including your age, location, driving record, and the coverage types and limits you choose.
To learn more, check out WalletHub’s guide on the factors that affect car insurance.
Should You Get a 6-Month Car Insurance Policy?
You should get a 6-month car insurance policy if you’re looking to shop around for the cheapest coverage more often. Certain changes in your circumstances may qualify you for a lower rate when your policy is renewed. These can include:
- Improving your driving record, such as a speeding ticket falling off your record
- Paying off a car loan
- Improving your credit score
- Getting older
A 6-month car insurance policy may also be worthwhile if you are looking to get a discount for paying in full and a 12-month policy is too expensive to pay for upfront. However, since insurers check your risk level more often for a 6-month policy, your rates could end up increasing more frequently if you rack up traffic violations or premiums rise across the industry.
To learn more, check out WalletHub’s guide on why car insurance rates go up.
Pros & Cons of a 6-Month Policy vs. a 12-Month Policy
There are some benefits to choosing a 6-month car insurance policy over a 12-month policy, but there are also downsides. To see whether a 6-month policy is right for you, you should look at all the pros and cons.
Pros of a 6-Month Policy
You can get a lower rate sooner.
Compared to a 12-month policy, 6-month car insurance allows you to get a revised rate more often. This can be beneficial for someone who has a bad driving record and expects their record to improve in the next 6 months. They can get a lower rate sooner, rather than waiting a year for their premium to drop.
It’s widely available.
A 6-month car insurance policy is more common than a 12-month policy. It’s also the shortest type of insurance policy you can typically get.
It offers flexibility.
If you would rather not wait a whole year to compare car insurance rates from different insurers, a 6-month policy gives you the flexibility to change insurers more often to make sure you always have the cheapest rates for the coverage you need.
It’s cheaper to pay in full.
Some insurance companies offer a discount if you pay your full premium upfront, rather than in monthly installments. If you can’t afford to pay an annual policy in full upfront, a 6-month policy might be more manageable.
Cons of a 6-Month Policy
Your rates can rise more often.
Since your insurance company will recalculate your premium every 6 months, it could rise more often due to mistakes on your part or rising costs overall.
With a 12-month policy, you are locked into your premium for a year. If you receive a speeding ticket or get into a car accident a couple of months into the policy, for example, your rate won’t go up as quickly.
May be hard to keep track of.
If your policy is not set to auto renew, you will have to remember to pay your premium every six months. This may be harder to remember than an annual premium. If you forget to pay your premium, you risk having a lapse in your insurance coverage.
To learn more, check out WalletHub’s guide on 6-month vs. 12-month insurance policies.
Alternatives to 6-Month Car Insurance
12-month policy: A 12-month policy is just like a 6-month policy, but only renews once a year.
Pay-per mile insurance: Pay-per-mile insurance charges rates based on the number of miles driven. It can be a good option for someone who does not drive often.
Non-owner insurance: Unlike 6-month car insurance, non-owner car insurance follows the driver instead of the car. This allows someone who doesn’t have a car, but often uses rental cars or borrowed vehicles, to have coverage.
WalletHub's personal finance experts are frequently cited by leading media outlets. Contact our media team to arrange an interview.