12-Month Car Insurance: Pros and Cons

With an annual policy, you'll see your rates stay consistent for a year at a time. However, not all insurers offer yearly auto insurance.

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By Beth Swanson

Updated April 22, 2025

Reviewed By Mark Friedlander

Edited By Renata Balasco

Can you buy a 12-month car insurance policy?

Yes, you can find auto policies that provide 12-month terms. A 6-month policy period is more common, especially with big national insurers like GEICO and Progressive, since it allows them to adjust rates more frequently. Some companies, like USAA or Amica, offer 12-month policies for more pricing stability. If you bundle auto and home, you might also get a 12-month option even if the insurer usually defaults to 6 months.

But is it the best option for you? It depends on your driving record, personal details, and insurance company.

Pros and cons at a glance:

Pros

Possible paid-in-full discount
Rate consistency for a year
"Set it and forget it" approach

Cons

Rate changes might feel higher
Missed savings if rating factors improve
Harder to find yearly policies

Jump to

How much does a yearly car insurance policy cost?
Which insurance companies offer 12-month policies?
Benefits of 12-month car insurance
The downside of a yearly policy
Other rating factors
FAQs

How much does a yearly auto insurance policy cost?

If a company does offer annual policies, you'll still need to meet eligibility requirements. Below are estimated prices for 12-month car insurance policies from well-known insurers (learn about our methodology). Remember that these rates are averages, so your premium will vary depending on your exact location and driving record.

We've created the tables below to help you understand what year-long policies may cost from top insurance companies.

12-Month Car Insurance Rates by Insurance Company and Coverage Level

Updating data...

Company	Liability Coverage	Full Coverage
USAA	$512	$1,687
Erie	$589	$1,670
Infinity	$622	$2,768
The Hartford	$777	$2,498
Allstate	$1,035	$2,975
MetLife	$1,140	$2,985

Source: The Zebra

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

Which insurance companies offer 12-month policies?

Yearly car insurance policies aren't common. We suggest you specifically ask for an annual policy duration during your quoting process; otherwise, most companies will default to a policy period of six months.^[1] Check the list below for companies to start with.

There are some instances in which you might not be eligible for a 12-month policy from these insurance companies: if your state does not offer the program or if you’re not eligible for coverage from the company — USAA only writes policies for members of the military community, and The Hartford only provides coverage for drivers over the age of 55.

Companies that may offer 12-month auto policies:

The Hartford	Liberty Mutual
The General	USAA
Infinity	Erie

Benefits of 12-month auto insurance

The main benefit of an annual car insurance policy is that your rate stays locked for a full year, providing peace of mind. With a standard six-month policy, rates are adjusted every six months, potentially increasing even without accidents or changes to your policy.

Insurance companies review their claims-to-revenue ratio annually. If they’ve paid out more in claims than they earned in revenue, they may raise premiums to balance the difference.

Types of Car Insurance Policies | The Zebra

Your car insurance policy determines the coverage you receive and how much you pay. Learn about the different options and pros and cons of each.

Why is a car insurance policy usually 6 months?

Most auto insurance carriers prefer to write six-month policies, and here are some reasons why:

Easier Premium Updates: Rates can adjust more often to reflect changes like accidents or improved driving records.
Better Risk Management: Shorter terms help insurers adapt quickly to changes in your driving habits or life situation.
Stay Competitive: Insurers can adjust prices more frequently to align with market trends.
More Flexibility for You: Renewing every 6 months allows you to shop around or adjust your coverage if needed.
Quick Policy Updates: Life changes? A 6-month policy means updates (like a new car or move) happen faster.

Is there a downside to a yearly policy?

The decision is ultimately up to you, but we're here to help you evaluate the advantages and disadvantages of a year-long car insurance policy. Let's examine the potential downsides of locking in your insurance pricing for 12 months so you can make the most educated decision possible.

Yearly polcy terms may not be available

Most major insurance companies primarily offer 6-month policies, as this is the industry standard for adjusting rates more frequently. While some insurers provide 12-month policies, they are less common and may only be available through specific plans. If you're interested in an annual policy, you may need to ask your insurer directly, as it’s not always a default option.

Your car insurance rates are locked in for a year

Whether this benefits you depends on your situation. For example, accidents typically raise rates for 3–5 years (unless you have accident forgiveness coverage), and insurers won’t adjust your premium mid-policy. With a longer term, you could overpay until renewal. You might request a rate review, but it’s not guaranteed to work.

Lower rates aren't guaranteed

Although your rates are locked in for a full year, that doesn’t automatically equate to a lower insurance premium. Your best bet for finding an affordable premium is to compare as many auto insurance companies as possible, finding quotes for six-month and 12-month policies.

Meredith Gulledge, real-life 12-month policyholder

Consumer insight

One of Zebra's employees, Meredith, spoke about her experience opting for 12-month policies. While she recently switched to a 6-month policy after her annual car insurance shop, she has had 12-month policies through Progressive (they no longer do 12-month policies) and Amica in the past.

"I like to lock in the price since it always seems to go up, and with a 12-month policy, I only have to check car insurance off my list once a year. I recently switched to a 6-month policy because, for the first time, the company with the lowest price for me didn't do annual policies. But I miss the pay-in-full discount, stability, and convenience of the annual policy."

-Meredith Gulledge, real-life former 12-month policyholder

What type of driver could benefit from a 12-month policy?

Not everyone wants a year-long auto insurance policy, and many folks are fine with renewing their insurance every six months. But a 12-month car insurance policy might be right for you if:

You don't want to deal with renewing or shopping around more than once per year
Your rating factors generally remain consistent and you don't expect big changes
You prefer to avoid monthly payments
You budget for large expenses in advance
You like to pay a year's premium at once and potentially qualify for a discount

What other factors affect my car insurance rate?

According to our data, about 43% of drivers say they're paying too much for auto insurance in 2025. As you've read above, changing the duration of your policy period will only affect what you pay for a temporary period — until a rate revision occurs. If you want to reduce what you pay in car insurance, it's important to understand other factors in the rate calculation. Some of these include:

Age
Gender
Location
Credit score
Driving history
Claims history
Marital status
Annual mileage

If you're looking to save money in the long term, we suggest focusing on some of the factors you can control, such as improving your credit score and driving safely. Also, be sure to shop around and get quotes from multiple companies. You can get started right now by entering your ZIP code below!

*Some states prohibit insurers from using certain factors like credit or gender. Check with your [2] or ask your insurer for more details.

Find affordable car insurance today!

FAQs

Is a 6-month or 12 month insurance policy better?

It depends on your situation: If you value stability and don’t anticipate changes in your driving record or insurance needs, a 12-month policy might be better. If you expect changes (e.g., improved credit score, a change in vehicles, or added discounts), a 6-month policy offers more flexibility. It's a good idea to compare quotes and ask your insurer about potential rate changes or discounts for each option.

Who offers yearly car insurance?

6-month policies are typically the default policy period, but most insurers offer the option of a 12-month policy. Some companies providing 12-month policies include Safeco, USAA, and Liberty Mutual. This can also vary by state; even if your company offers specific time frames in other locations, it may not be an option where you live.

Can I get a discount for a 12-month policy?

Many companies offer a paid-in-full discount regardless of the policy period, and you might save more by paying for an entire year's premium upfront. You'll want to ask your agent or insurance company about this. By committing to an annual policy, you benefit from your rate not increasing throughout the year.

Is it better to pay for car insurance monthly or yearly?

This depends on your personal preference and which insurance company you work with. Most companies will write a policy for six months by default, and you can pay in full or per month. Most insurers offer a pay-in-full discount, so it's worth asking if a lump payment is an option for you.

Sources

What is an Insurance Policy Period? The Balance
State Insurance Departments. NAIC

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.