As a vehicle owner, you can save on car insurance in a variety of ways, from doing comparison shopping to qualifying for discounts. Another thing you can do to reduce your auto insurance premiums is to shop at the right time. So, what’s the best day to buy car insurance? Let’s find out.
When Should You Shop for Auto Insurance?
The best time to shop for auto insurance depends on two factors: the buyer and the auto insurance industry. Usually, you can get more favorable car insurance rates immediately after any change or event in your life that can affect your premiums. If you look at the auto insurance sector as a whole, December is generally a good time of the year to shop for quotes.
Since auto insurance is state-regulated, you typically won’t find an insurer that offers promotions or holiday savings, according to The Zebra. Trying to anticipate any insurance company’s premium revisions can be a hit-or-miss affair. However, you can expect your car insurance costs to go down right after a life event that may lead to a personal rate revision. If you’ve just celebrated a birthday, improved your credit rating, or had a violation dropped from your record, it’s an opportune time to shop around. Other events that may impact your auto insurance rates include:
- Earning a degree
- Getting married
- Renting an apartment
- Buying a home
While it isn’t as impactful as personal factors that influence your car insurance costs, understanding the way auto insurance providers calculate premiums can be helpful. At the end of each year, insurance companies evaluate claim filings before setting their rates for the following year. If an insurer finds that it earned less in premiums than it paid out in claims over the past year, it’ll likely increase its premiums. While it’s hard to predict, you may want to shop for auto insurance for the coming year in December.
It’s important to note that insurance companies will most likely raise their rates following a natural disaster, such as a wildfire or hurricane. This is because they had to pay out many claims within a short time.
When Is a Good Time to Switch Car Insurance Companies?
In reality, insurance companies don’t offer lower rates at any particular time of the year. Also, there isn’t really a wrong time to buy a new policy or switch carriers. However, you can save a little on car insurance and potentially avoid fees if you’re able to time your purchase perfectly.
In most cases, the duration of an auto insurance policy is just six months, according to Compare.com. As such, your insurance company can quickly raise your premiums after you had an accident or made a claim. Then again, it also gives you an opportunity to shop around and negotiate for better rates.
Twice a year, your auto insurance provider will likely send you an email to remind you it’s time to renew your policy. This message typically also includes a notification stating that your insurer will automatically process your payment on a specific date. While this may sound like a done deal, it isn’t. You’ll receive the message about a month before the renewal date of your policy. This gives you enough time to shop around for new auto insurance if you aren’t satisfied with how much you’re currently paying.
What 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.
Some vehicle owners may think that Car Insurance Day is the best time to shop for car insurance. However, the truth is, auto insurance never goes on sale. Regardless of the time of the year, you should consider switching insurance carriers if you’re able to find one that can provide the same or better coverage at a lower rate. Compare.com revealed that a large number of its users shop for auto insurance quotes an average of 41 days before the expiration dates of their current policies to get the best possible rates.
If you decide to make adjustments to your current auto insurance policy or want to look for a better deal, you should compare quotes from different car insurance providers to find the lowest one. Many insurance companies advertise on television that they offer the cheapest auto insurance, but these claims aren’t always true.
NerdWallet conducted a survey based on a 40-year-old sample driver with a good driving record who wants to purchase a full coverage policy for a 2018 Toyota Camry LE. In Florida, they found that State Farm offered an annual rate of $1766, while GEICO quoted $239 higher. However, in California, GEICO was the most affordable with an average premium of $1458, whereas State Farm was $423 more expensive. From this survey, you can see that auto insurance quotes may vary greatly depending on the driver, the type of vehicle they drive, and even their location.
When you’re shopping for auto insurance, make sure you compare quotes from multiple insurance companies before committing to anything, says MotorBiscuit. 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. Many insurers offer discounts for the following:
- Insuring multiple vehicles on the same policy
- Bundling auto insurance with other kinds of insurance, such as homeowners or renters insurance
- Maintaining a good driving record
- Having anti-theft devices in your vehicle
- Paying your premiums all at once
- Accepting paperless billing.
While it’s important to shop for auto insurance at the right time, you can also take other measures to lower your premiums. Keeping a clean driving record, raising your credit score, and getting discounts can help you save even more.
Check this out if you need additional information, resources, or guidance on car insurance.
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