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.
Can you buy a 12-month car insurance policy?
Yes, you can buy a 12-month car insurance policy, but it may take a bit more searching to find the right company that offers it; the typical policy length is six months.
In theory, a yearly policy secures your car insurance rates and keeps your insurer from raising your premium for an entire year. 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:
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Possible paid-in-full discount
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Rate consistency for a year
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"Set it and forget it" approach
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Rate changes might feel higher
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Missed savings if rating factors improve
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Harder to find yearly policies
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.
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 accepts military members and their families, and The Hartford only provides coverage for drivers over the age of 55.
| MetLife | Liberty Mutual |
| The General | USAA |
| Infinity | Erie |
| Kemper | The Hartford |
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.
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.
Most major insurance companies stick to 6-month policies, which is the industry standard for recalculating rates more frequently. While some may offer annual policies through older plans, it’s best to confirm directly with your insurer or any companies you’re considering.
Whether this benefits you depends on your situation. For example, accidents typically raise rates for 3–5 years, 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.
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.
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.Â
"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 paymentsÂ
- 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 40% 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!
Find affordable car insurance today!
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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.