One Month Auto Insurance (Short Term Insurance for 2021)

It's difficult to find a reputable insurance company that will offer one-month auto insurance. However, a month-to-month policy covers drivers who have short-term needs, such as being in-between policies, so they can avoid a lapse in coverage. Learn more about your one-month car insurance options below.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 16, 2021

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Can I Get Month-to-Month Car Insurance?

Here's what you need to know...

  • It is difficult, but not impossible, to find a reputable insurer that will offer a temporary policy for less than six months.
  • Insurers offer temporary coverages that serve to cover drivers who do not own a car or who are in between insurance plans, but there are also other instances in which temporary insurance can be useful.
  • Drivers should consider other types of coverage, such as rental or nonowner car insurance, before jumping into a cheap one-month policy.

When shopping for cheap rates, there might be times when you don’t want coverage for a long period of time. In some cases, you may just need a one-month policy before committing to a new company or canceling altogether.

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What is month-to-month car insurance?

However, it is difficult to find temporary coverage for less than six months being offered by a reputable car insurer.

While drivers should consider other types of coverage before getting one-month coverage, we’ll cover what temporary insurance is and when you should consider using it below.

Affordable one-month coverage is out thereEnter your ZIP to compare and buy one-month auto insurance from top insurers in your area.

Is one-month auto insurance considered month-to-month?

What is temporary car insurance?

One month vehicle policies are known as temporary auto insurance. Temporary car insurance is difficult to find, especially for coverage lasting less than six months.

If you are looking for a one month term policy, you may have to purchase a six-month policy and cancel partway through. However, some companies also offer month-to-month car insurance payment plans, which makes canceling easier.

If you need a policy without owning a car, you may want to consider rental car insurance or non-owner auto insurance. You may also be able to ask your long-term auto insurer to make accommodations for a short-term situation.

What coverage does temporary auto insurance provide?

Temporary or month-to-month will still offer you the coverages of a standard policy. This will help you meet at least the minimum requirements for auto policies in your state.

Other coverages offered by auto providers, like collision and comprehensive, will also be available to you.

Take a look at this table to see what the average annual rate is for different coverage levels. This will give you an idea of the costs you may be looking at.

Average Annual Auto Insurance Rates By Coverage Type
CompaniesAverage Annual Auto Insurance Rates for High CoverageAverage Annual Auto Insurance Rates for Low CoverageAverage Annual Auto Insurance Rates for Medium Coverage
Allstate$5,139.02$4,628.03$4,896.81
American Family$3,416.40$3,368.49$3,544.37
Farmers$4,494.13$3,922.47$4,166.22
GEICO$3,429.14$3,001.91$3,213.97
Liberty Mutual$6,356.04$5,805.75$6,058.57
Nationwide$3,505.37$3,394.83$3,449.80
Progressive$4,350.96$3,737.13$4,018.46
State Farm$3,454.80$3,055.40$3,269.80
Travelers$4,619.07$4,223.63$4,462.02
USAA$2,667.92$2,404.11$2,539.87
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Low coverage is about $312 a month, and full coverage is around $345 a month. While liability-only coverage will generally fulfill your minimum requirements, full coverage offers you much more peace of mind for only about a dollar more a day.

These auto coverages aren’t one size fits all. You can choose only the coverages that fit your needs. This can help keep your payment low.

Why don’t most companies sell temporary auto insurance or month-to-month policies?

There are many reasons why one-month coverage is difficult to find. Most reputable insurance companies don’t offer policies for less than six months, since the cost of covering a driver for less is not worth it to them.

These are some factors you need to be aware of if you’re looking for short-term car insurance:

Will I be covered immediately?

Many major car insurers also limit the use of collision and comprehensive coverage for new policyholders. This grace period could last up to 45 days, which is likely to last longer than your short-term needs.

Could I lose my down payment?

If you were to purchase a longer policy and then cancel after your short-term situation passes, you may lose your down payment and be charged cancellation fees that can diminish your refund and increase your costs overall.

Will it show as a gap in my coverage?

Even though you will have coverage, a temporary policy may show a gap in your coverage history. Since it is not a standard policy, this could cause you headaches down the road.

Will my age and driving record determine if I can get temporary coverage?

Some companies will not offer your short-term coverage if you are under 25 years old. Also, if you have a poor driving record, companies will be leery of offering you this type of coverage.

What is required in most states?

In most states, coverage is required in order to drive a vehicle on the road. And lenders will likely require you to carry the state minimums as well as collision and comprehensive, even if you don’t drive the car regularly.

A one-month policy will help you meet the legal requirements in your state.

According to (III), about 13 percent of drivers were uninsured in 2015. If you are caught driving while uninsured, you can face fines, driver’s license suspension, and even jail time.

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Who Needs One-Month coverage?

Individuals who are interested in temporary, short-term, or month-to-month car insurance often include:

  • Classic car collectors – Temporary coverage can cover classic cars when individuals plan to drive their cars for a short amount of time.
  • Student drivers – Temporary coverage is helpful for college students who only drive their car while home for breaks. However, it might be better to just decrease their coverage or take them off your long-term policy while they are away.
  • People in emergency situations – If there is an emergency and you need to use your car for a short period of time, you could use temporary coverage.

As you can see, there are many different reasons someone might need temporary car insurance.

What is the difference between short-term vs. long-term insurance?

As you can see, there is a place for short-term insurance.

In cases of young or student drivers, classic car owners who want to cover their car for a short time, or for anyone who does not currently own their own car, temporary or short-term insurance offers a viable short-term alternative to car coverage.

But if you own a car that you drive regularly or frequently, it’s best to stick to one of the long-term plans.

What are the reasons to change from temporary to permanent insurance?

It is wise to keep in mind that, while temporary vehicle coverages are a great solution for short-term needs, it is not a long-term policy and should not be used for long-term situations.

If you find yourself or someone on your policy in one of these situations, you may want to consider changing from a temporary to a permanent policy:

  • A student driver gets their own car and needs to have that car fully covered with all of the state minimums for the new car
  • You start driving your classic car more often than you originally thought you would
  • Your driving status changes or you add more people or cars to your policy
  • Younger drivers get older and require more coverage than they previously did
  • Someone on the temporary insurance has an accident that increases the rates on the short-term insurance

In any of the above cases, you may want to consider shopping around for other insurance options to make sure you get the best deal on long-term policies.

It often helps to compare policies side-by-side so that you can see which options are really needed and which are not.

Roadside assistance options, for example, may be a great idea for student drivers or young drivers.

People who travel often will also want to consider having roadside assistance.

You should consider all coverage options when shopping so that you can get the most for your money when you switch from temporary to long-term coverages.

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How Can I Compare One Month or Month-to-Month Car Insurance When Shopping Online?

When shopping for temporary or month-to-month car coverage, what should you look for to ensure that you are getting the best temporary coverage?

  • Make sure the coverage includes the required state minimums. This is the minimum amount of coverages that someone can carry and be in compliance.
  • Carry enough collision coverages to guarantee that your car will be replaced or repaired in the event of damage.
  • Consider the amount of time that you will need temporary coverge and purchase enough to cover the time period. It might be wise to purchase enough to cover an extra day or so in case you need more time.
  • Look at the different policies and find out which companies cover you under a temporary plan.
  • Check the history of the company or ask an online agent to give you the stats on the company. Find out how well the claims on temporary insurance pay for that particular company or policy.

While shopping, be sure to be mindful of where you are on what kind of coverage you want. For example, searching for one-day car insurance in the USA is different than looking for temporary coverage in California.

Should you shop and compare auto insurance rates?

Ask for advice from an insurance company professional when comparing plans or anytime you think you need short-term insurance.

By doing so, you can have a clear understanding of what different policies from various companies end up costing.

For example, there are differences between GEICO one-month plan, Progressive short-term policy, and AAA temporary car insurance.

Insurance agents can offer sound advice on how much to get and for how long, as well as options that are the most feasible while on the short-term plan.

Wondering what one-month rates look like? Enter your ZIP to get one-month auto insurance quotes from multiple companies now.

Frequently Asked Questions: Month-to-Month and One-Month Auto Insurance

Keep reading to find answers to some common questions.

#1 – Do I need temporary insurance to take a driving test?

No. While the car you take the test in must be insured, as a permit driver, you should be covered under your parents’, spouse’s, or significant other’s policy.

#2 – Do I need temporary coverage when I purchase a new car from a dealer?

No. Your test drive was covered under the dealer’s insurance. And the dealership may offer temporary insurance after your purchase, but it will likely save you money if you take the time to shop around and compare long-term insurance rates from other companies.

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