You can buy car insurance any time of the year. However, there are certain times you may want to think about shopping for auto coverage. We’ve put together a list of frequently asked questions about when is the best time to buy car insurance to help you find what you need. Oh, we also have the answers too.
Getting car insurance is mandatory, but finding an affordable policy can be challenging. Rates can fluctuate daily so when you buy matters. Is there really a best day of the week or month to lock in the lowest premium? After thorough research I’ve determined ideal timing strategies to score you the cheapest car insurance rate.
In this comprehensive guide we’ll cover how insurance rates work, why timing your purchase influences price strategies to pinpoint the perfect day for the best deal, and ways to maximize savings year-round. Follow my tips to start your new policy when rates are advantageous.
How Car Insurance Rates Are Set
Insurance companies use complex algorithms to calculate premiums based on projected risk. Rates factor in:
- Your personal details like age, credit, address, and marital status
- Vehicle attributes like make, model, age
- Driving history factors including accidents, tickets, and claims
- Your selected coverage limits and deductibles
Insurers adjust base rates frequently according to claims experience, profit goals, and competition. This is why shopping around for quotes is so important – pricing varies across providers.
Why Timing Matters for Car Insurance Buys
Insurance rates fluctuate often, sometimes daily. Though the exact algorithms are private, we know rates are influenced by:
Seasonality – More driving in summer raises risk, so premiums cost more than winter.
Inflation – Rising costs of vehicle repairs, medical care and auto parts push rates higher.
Profit Goals – Carriers tweak pricing based on desired profit levels for upcoming periods.
Consumer Habits – Data shows customers tend to shop end of year and renew policies over summer.
Insurers strategically adjust rates to attract customers during slower shopping periods and in competitive markets. Timing your purchase takes advantage of short-term deals.
Strategically Pinpointing the Best Day for Car Insurance
Shopping at the right time could save you hundreds on a new policy. Here are tips to find the ideal day to lock in maximum savings:
Compare Quotes Frequently – Get quotes regularly to spot lowering premiums.
Track Holidays and Events – Avoid buying around expensive driving holidays.
Monitor Mondays and Fridays – New rates roll out earlier in the week, older ones on Fridays.
Mark Your Renewal – Renewing just before causes a jump, right after nets deals.
Mind End-of-Quarter Timing – Late March, June, September, December offer deals.
Use Online Quote Tools – Name-your-price tools reveal best days for quotes.
Follow Rate Filings – Check state insurance bureau sites for rate changes.
The key is staying vigilant with quote comparisons to find temporary rate decreases. Jumping on a short-term dip can lead to 12 months of savings.
Ideal Times of Year for Affordable Rates
While any day could produce a good deal, research shows car insurance prices trend lower during certain periods:
January – Slower winter driving and post-holiday sales create bargains.
February and March – Rates remain low after the New Year.
Mid-September – Kids are back in school and driving declines.
October – Winter driving lull plus insurance shopping spikes provide leverage.
Early December – Pre-holiday discounts before increased winter driving risk.
Aim to buy or renew coverage during these cooler, slower driving months for potentially better prices.
The Worst Times to Buy Car Insurance
On the flip side, avoid purchasing coverage during historically expensive periods:
Late Spring – Rates spike in May and June as summer driving season starts.
Summer – More driving, accidents and thefts mean higher rates from June through August.
Late Fall – Thanksgiving, Christmas travel boosts rates in October, November and early December.
End of December – Renewal rate hikes hit before the New Year.
If your policy expires in summer, look to renew early in spring or fall instead for lower rates.
Strategies to Save Year-Round on Car Insurance
Maximizing savings takes more than just ideal timing. Here are 7 ways to pay less for coverage:
- Comparison shop quotes frequently, at least twice a year
- Ask about all discounts you may qualify for
- Consider raising your deductible level
- Inquire about usage-based or telematics programs
- Ask about bundling home and auto policies
- Maintain a good driving record and credit score
- Explore group insurance and professional association discounts
Finding the single best day isn’t easy, but combining smart timing with other savings strategies can help you secure an affordable car insurance premium.
Final Thoughts on Timing Your Car Insurance Purchase
Finding the perfect day to buy car insurance takes effort, flexibility and diligent rate watching. But strategically timing your new policy or renewal around projected rate changes can help you save significantly.
I suggest shopping quotes often, especially during historically cheaper periods in late winter and early fall. Track and jump on temporary rate dips in your area. Combining ideal timing with other discounts and cost adjustments delivers big savings over the long run.
With the right preparation and understanding of market forces, you can learn to pinpoint the opportune time to lock in the lowest auto insurance rates. Do your research and quote comparison to catch discounts as they appear.
I’ve heard that certain life events can be a good time to shop for car insurance. What life events are they talking about?
After certain events in your life, you might want to look for a better deal on your car insurance. Common life events can include.
- When a married couple or domestic partner combines their car insurance with another company, they may get a discount.
- If you buy a house or rent an apartment, you can save money on your car insurance by bundling your home or renters insurance with it.
- Moving to a new area: If you just moved to a new state or area, your car insurance rates may be lower, but it depends on where you live now.
- You just retired. If you drive less now that you don’t have to drive to work, your insurance company may lower your rate because you drive fewer miles each year.
- Your birthday: How much you pay for car insurance can depend on your age. That being said, your birthday might be a good time to buy car insurance because as you get older, your rates will go down.
- About a month before your auto policy renews: Thirty to sixty days before your policy renews is a good time to go over your current coverages. You have time to switch car insurance if you need to after doing this.
There are also car-related events that are a good time to buy insurance that include
- Chargeable violations don’t automatically go away when you get a new car insurance policy. You should shop around for insurance after a violation like an accident where you were at fault or a speeding ticket goes away to save money on rates.
- Your teen driver just got their license. The cost of car insurance for teens is one of the highest. There may be times of the year when you can get better deals on car insurance when you add your teen driver to your policy.
- There are new things you need to know about your car insurance. Do you need to raise your liability limits? Should you add Emergency Roadside Service or Comprehensive Coverage? If so, now might be a good time to shop around.
- Good luck with your new car! Now is the time to look for insurance so you’ll be covered in case of an accident or theft.
Is it a good idea to switch car insurance companies every year to help save money?
Theres no evidence showing that switching car insurance companies every year will save you money. You can even get discounts from some insurance companies if you stay with them for a long time and have a history of being a safe driver.
However, if youre wanting to switch car insurance companies, we can help make the process easier.
How Much Car Insurance Do I Actually Need?
When is car insurance day?
It remains unknown how Car Insurance Day originated, but the occasion is celebrated the first of February. While it’s a non-official holiday, just like National Chocolate Cake Day and National Siblings Day, it may be a good time to review your current auto insurance policy and determine whether you should make any adjustments.
When is the best time to buy car insurance?
The best time to buy car insurance is when you have a major life event, your driving record has improved, at your renewal period, or if you can’t afford your current premium. Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money. 1.
Should you buy car insurance in December?
An increase in insurance premiums is common after natural disasters, such as hurricanes or wildfires, in which an insurance company had to pay out a large number of claims in a short period of time. Although this is difficult to predict, you can set aside time in December to shop for car insurance for the coming year.
Is Feb 1 a good time to buy auto insurance?
Although Feb. 1 may not be the best time to score a great auto insurance deal, it can be a good day to go over your current auto insurance policy and try to save money by switching to a different insurer. If you want to save money, NerdWallet advises you to always ask about any discounts you may be eligible for when shopping for auto insurance.