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. Its findings are interesting and puzzling.
Unquestionably the best time to purchase insurance is now if you don’t have it and you want to drive. However, this doesn’t stop people asking can rates be better 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 lowest and highest month was as much as 35 – 48% in some states like Hawaii, Wyoming, Maryland and Washington, D.C., and non-existent in several others 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 the market. Fluctuations are more likely in places with less competitive market conditions.
According to the study, December was the cheapest month to buy auto 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 to arrange 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 in 11 and this throws a wrench in the works. So, it is fair to say that the findings are hardly conclusive.
However, there may be several plausible explanations as to why December is the most opportune 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.”
When to Get a Few Quotes
Every little helps when it comes to saving money. And therefore, this post sheds a light into this interesting question. You can switch auto companies whenever you want and you can indeed get a few quotations in December and see if it is a opportune moment to clean the old out and get in with the new.
Generally, people look to cover a risk arisen due to a recent event like vehicle or property acquisition. That is why you cannot hold out when it is for the first time. However, a lot changes after buying first car insurance that can give you a chance to move the renewal to December.
It is fair to say that ideally you should get quotes when there is a serious change in your circumstances. Every company has its strengths and weaknesses when it comes to pricing a risk. And adjustments can be significant enough to make another carrier more competitive 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 carriers. Adding a new driver, changing cars, jobs, getting married, moving home, leaving teenage years behind are all significant factors that affect prices. Hence you should comparison shop before you agree to whatever extra premium the current provider demands.