Should I Buy a 6 or 12 Month Car Insurance Policy?

Last Updated on February 5, 2026

Most drivers don’t get to “pick” a policy length—many insurers default to a 6-month term. But if you’re offered a choice, the best option usually comes down to how stable your life is right now (move? new car? teen driver?), how often you want to shop, and whether you’re trying to lock in a rate for longer.

• Most insurers primarily sell 6-month auto policies, while 12-month (annual) terms are less common and may depend on your state and carrier.
• A 6-month policy is best for flexibility—especially if you may move, change cars, add drivers, or want to shop rates more often.
• A 12-month policy can be more convenient and stable, with fewer renewals and fewer opportunities for renewal-related rate changes.
• The “cheaper” option depends on the insurer and your rating factors—so compare quotes and stack discounts before choosing a term length.

6-Month vs. 12-Month Car Insurance: Quick Comparison

What actually changes your price during the term?

With either term length, your premium is usually “locked” until renewal. But your bill can change mid-term if you make policy changes—like switching cars, adding/removing drivers, changing coverages/deductibles, or moving. Those are endorsements, not a renewal.

Pros of a 6-month car insurance policy

• Easier to shop and switch sooner. If you find a better deal (or your service is terrible), you’re not waiting a full year to switch auto insurance companies.
• Better when your life is changing. If you’re moving, buying a different car, adding a driver, or changing commutes, a shorter term reduces the chance you feel “stuck” in the wrong setup.
• Smaller pay-in-full amount. Paying the entire term upfront can unlock savings—plus it’s easier to pull off with a 6-month bill. (Here’s a deeper look at whether paying in full or monthly makes more sense.)

Cons of a 6-month car insurance policy

• More renewals to manage. You’ll deal with paperwork, reminders, and decisions twice per year. If you rely on autopay, it’s still smart to know how car insurance renewals work so you’re not surprised by changes.
• More chances for the rate to move. Because you renew twice as often, you have twice as many “price reset” moments (for better or worse).

Pros of a 12-month car insurance policy

• Convenience. One renewal a year means fewer emails, fewer decisions, and less time quote-shopping.
• Rate stability. If your situation stays steady, a longer term can mean fewer opportunities for renewal-related increases.
• Potentially fewer payment fees. If your insurer charges installment/service fees for monthly payments, a single annual plan can reduce how often you pay those fees (especially if you pay in full).

Cons of a 12-month car insurance policy

• Harder to find (and not offered everywhere). Many large insurers primarily sell 6-month terms. If you want to compare options, start with a broad list of car insurance companies and ask directly whether annual terms are available in your state.
• Less flexibility if you want to change carriers soon. You can generally still leave mid-term, but depending on the insurer and state rules, your refund may be prorated and there may be a short-rate penalty. If you do change carriers early, read this guide on canceling auto insurance the right way so you don’t create a coverage gap.
• Bigger upfront cost. Paying in full can be a money-saver, but a 12-month bill is a bigger hit to your cash flow.

Which one is usually cheaper?

There’s no universal “6 months costs less” or “12 months costs less” rule because pricing depends on the insurer, your state, and your personal rating factors. What matters most is how the company rates you and what discounts you qualify for.

When you compare quotes, focus on the drivers of your premium: driving history, ZIP code, vehicle details, mileage/commute, and—where allowed—credit-based factors. Then make sure you’re applying every discount you actually qualify for (start here: best auto insurance discounts).

A quick checklist to pick the right term

• Choose 6 months if you expect changes soon (move, new car, new drivers), you like shopping often, or you’re trying to improve your risk profile and re-quote sooner.
• Choose 12 months if your situation is stable, you hate shopping, and you value fewer renewals and steadier budgeting.
• Either way: compare quotes at least once per year, and don’t assume your current insurer will stay competitive.

FAQs on 6-Month vs. 12-Month Car Insurance Policies

Bottom line

A 6-month policy usually wins on flexibility, while a 12-month policy wins on convenience and stability. If you can get an annual term at a competitive price and your life is predictable, it’s a great “low maintenance” option. If anything in your household, car, or address may change soon, a 6-month term is often the safer bet.

And if you decide to change companies mid-term, it’s totally doable—just make sure you switch your car insurance mid-policy without creating a lapse.