When Is the Best Time to Buy Car Insurance?

There are so many ways of lowering premiums and you may know a few of them. However, there are several unknown and unconventional ways of getting discounts. Could shopping at a certain time of year be one of them? A recent study attempts to answer this question by looking at when is the best time to buy auto insurance? Its findings are interesting and puzzling.

Best Time to Buy Car Insurance

Unquestionably the best time to purchase coverage is now if you don’t have insurance and you want to drive. However, this doesn’t stop people asking can rates be cheaper in some months and more expensive in others? If the answer is yes, this proves to be another hardly known way of saving money.

According to a recent study “the national average cost of a new full coverage vehicle insurance policy for a 35-year-old single male driver with a $500 deductible and a clean driving history was 8% cheaper in December than March.”

The difference in rates between the cheapest month and most expensive month was as much as 35 – 48% in some states like Hawaii, Wyoming, Maryland and Washington, D.C., and non-existent in several other states like Arkansas and South Dakota. According to some experts, the rates should follow a tight line throughout the year if there is good competition in a state insurance market. Fluctuations are more likely in states with less competitive market conditions.

According to the study, December was the cheapest month to buy vehicle insurance nationally and in the following 22 states: Arizona, Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Maine, Maryland, Minnesota, Montana, New Hampshire, New Mexico, New York, Oklahoma, Pennsylvania, South Carolina, Texas, Vermont, Virginia, Wyoming and Washington, D.C.

Meanwhile, March was the most expensive month to purchase coverage in the US on average and for the following 16 states: Alabama, Arizona, Alaska, Delaware, Georgia, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, New Jersey, South Carolina, Washington, Washington, D.C., West Virginia and Wisconsin.

On overage, December certainly sticks out as the best time to purchase automobile insurance in the US. It is the cheapest month in 44% of the states. Nonetheless, it is the most expensive month in 11 states and this throws a wrench in the works. So, it is fair to say that the study’s findings are hardly conclusive.

However, there may be several plausible explanations as to why December is the cheapest month. According to Eli Lehrer, president of The R Street Institute, “This is almost certainly because a lot of rate increases and new rating plans take effect in January, when the year, as well as many companies’ fiscal years, begins. What’s more, some prices rise automatically with inflation under certain rating plans, and this often happens in January.”

Best Time to Get a Few Quotes 

Every little helps when it comes to saving money. And therefore, this study sheds a light into this interesting question of when is the best time to buy your policy? You can switch auto insurers whenever you want and you can indeed get a few quotes in December and see if it is the best time to get quotes and change insurers in your state.

Generally, people buy insurance to cover a risk arisen due to a recent event like vehicle or property purchase. That is why you cannot hold out for a good time when it is for the first time. However, a lot changes after buying first auto insurance that can give you a chance to move your renewal to December.

It is fair to say that the best time to get quotes is when there is a serious change in your circumstances. Every company has its strengths and weaknesses when it comes to pricing a risk. And changes in your circumstances can be significant enough to make another insurer cheaper for you now.

That is why you should have a quick look at this post that discusses circumstances for the best time to get quotes and switch insurers. Adding a new driver, switching cars, getting married, buying home, changing jobs, leaving your teenage years behind are all significant factors that affect vehicle insurance rates. Hence you should take your time to get a few quotes and compare them before you agree to whatever extra premium your current insurer demands.

Share on Pinterest
There are no images.