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First Month Free Car Insurance?

Are you looking for first month free car insurance? Is there even such a think as first month free car insurance? Can you save money with a policy that offers a month for free?

If you are wondering about first month free car insurance, there are a few things you should know. First, there is such a thing, but it might not be exactly what you think.

Discounted Policy

First month free or any month free car insurance is an option car insurance companies offer as a sale. Your policy will be just like any other. You get the same coverage as someone paying for a full 6 or 12 months of a policy, but you do not have to pay until the second month of coverage. Companies offer this discount to brand new customers, as well as customers choosing to renew their policy. Some even go as far as offering the first two months free to customers re-enrolling for a second year.

Do You Save?

Does this mean customers pay less for their insurance policy? Maybe. Some auto insurance companies offer a true discount. They will take a regular policy, chop off the first month’s payment, and overall a customer pays less for his policy. In other cases, insurance companies fudge the numbers. If the total cost of a policy is $600 and payments are broken into $100 per month, they will offer the first month free, but charge $120 per month thereafter. Overall, you are still paying $600, but you are not making a payment the first month.

For some customers, this version of first month free car insurance is still helpful financially. If you are signing up for car insurance during a month in which your budget is tight, it can help to put off your first payment until month two. However, you need to understand you are not saving anything overall. There might be cheaper options that offer more savings, even if you must make a payment the first month. Determine if your priority is to save on a car insurance policy or if your priority is to postpone your payments. This makes it easier to determine which option is best for you.

Renewing Your Policy

If your car insurance provider is offering a month or two free for renewing your policy, there is a better chance you will actually save money. If a payment is postponed, but a policy costs the same overall, current customers can easily see they are paying the same rate. And since their rate might actually INCREASE if the company makes an offer such as this, there would be no reason for a customer to accept the offer. Here’s an example:

You have been purchasing insurance from a company for a year and paying $100 per month for a total of $1200 for your policy for a year. The company offers you first month free car insurance if you renew your policy, but it does not include a reduction in your overall rate. The month your policy renews, you will pay nothing. The following month and the remaining 10 months you pay $109 instead of $100. You are likely going to notice the monthly rate increase and realize you are not getting a discount.

The only time this offer is advantageous is if your renewal month happened to fall during a tight month financially. You could spread that month’s payment over the course of a year instead of paying it upfront.

If you are looking for first month free car insurance or you need help finding an auto insurance, use our free search tool to find the policy that is right for you.


  • Larry Sweatt Posted August 6, 2016 5:25 am

    Need full coverage insurance for 2009 Chevrolet Cobalt LS two-door can pay in full on the 27th of august.

  • admin Posted August 13, 2016 3:26 pm

    Hi Larry, please contact our office directly at 909-868-0394. Also what state are you located in?

  • Kathryn Posted August 26, 2016 12:21 am

    Need insurance for a 2011 Nissan Sentra but need the first month free, I stay in Louisiana.

  • admin Posted August 28, 2016 4:10 pm

    Hello Kathryn, I will be happy to help you out please type in your zip code on the main page of our website and it will take you to a list of companies that don’t charge a down payment. Thank you for your inquiry. Have a great day

  • Crystal Vanee Posted April 30, 2017 10:22 am

    do i have to pay for 2 months

  • admin Posted June 6, 2017 3:01 pm

    What state are you in Crystal?

  • Chance Posted May 19, 2018 7:16 am

    Just bought a car to get to and from work need first month free CAN anyone help me

  • WP Posted July 10, 2018 6:51 pm

    Hello, are you still looking for auto insurance?

Comments are closed.

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