What Month Are Auto Insurance Rates The Cheapest?

According to one study, the cheapest month for auto insurance is December, when rates are eight percent cheaper than in spring for most states. This insurance study only examined one year's worth of auto insurance rates to find the cheapest month for auto insurance, and it was found that auto insurance costs vary by state. If you want to find the cheapest car insurance in your state, comparison shop online for free auto insurance quotes. Enter your ZIP code below to get started.

Free Auto Insurance Comparison

secured lock Secured with SHA-256 Encryption

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Full Bio →

Written by Rachel Bodine
Insurance Feature Writer Rachel Bodine

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

Full Bio →

Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Mar 11, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

If you are shopping for car insurance it is a good idea to check your calendar before you begin. The reason for this is because after a year-long study completed by InsuranceQuotes.com, it was found that the amount you pay for car insurance can vary by as much as 48% depending on the month of when it is purchased.

Which Month is the Cheapest?

The study found that purchasing auto insurance during the month of December will provide you with the cheapest rates. Coverage was found to be as much as 8% cheaper on average during this month when compared to auto insurance policies that were purchased during the month of March, which is the most expensive month.

When it comes to the price of insurance, the amount you pay will vary greatly by the individual state. In the state of Hawaii, people who purchased car insurance during the month of December paid up to 48% less than those who purchased a policy in the month of March.

In the state of Pennsylvania, April was the most expensive month to purchase car insurance, with those purchasing their policies in the month of December saving up to 34.5%.

Compare over 200 auto insurance companies at once!

secured lock Secured with SHA-256 Encryption

Why the Variations Between Months?

The researchers who conducted the study could not find a single factor to determine why there was such variability in the rates between months. One of the things that complicated the matter was the fact that the patterns were varied between each of the states. While December was the cheapest month across the nation on average, in 11 states December was actually the most expensive month to purchase your car insurance policy.

“The researchers who conducted the study could not find a single factor to determine why there was such variability in the rates between months.”

The study was only conducted for a year and this was the first time that it has been done. For this reason, it is difficult to really determine any patterns. There are many different reasons that make the rates vary and there is no real way to pinpoint a single reason.

The differences in pricing patterns in the different states are to be expected because auto insurance is regulated by each state individually. Additionally, the climates in each state vary by regions and the carriers in each state experience surges in claims based on weather related incidences. This may be one of the driving factors of raising costs at different times of the year.

One of the reasons that December is likely one of the cheapest months to purchase an auto insurance policy is because inflation adjustments and rate increases typically will take effect when the new year starts in January.

How to Find the Cheapest Auto Insurance Policies

Most people do not realize exactly how much the price of car insurance policies fluctuate during the year. This is why it is extremely important to shop around when you are purchasing a car insurance policy.

When you are considering a new car insurance policy you should get quotes from a minimum of at least 3 different auto insurance companies. You can do this by contacting auto insurance companies in your area directly and asking for quotes or by visiting a website that offers comparison quotes.

The Best Way To Use Auto Insurance Quote Websites

Many of the comparison quote sites will provide you with a fairly complete list of the rates that you can expect to pay for an auto insurance policy from several different companies. This can make shopping for car insurance much easier to complete.

When you are shopping for an auto insurance policy it is important to note that you are simply getting a quote. This price may be different once you talk to an insurance agent as there are many factors that can raise or lower your rate. The best way to get the most accurate quotes is to provide all of the information that is asked for. This includes your driver’s license number.

The Final Word On December Auto Insurance Rates

While the study conducted by InsuranceQuotes.com offers some interesting information, it is not the most reliable information because it was the first year that this type of study has been completed. The study did find some information that you can use when you are searching for a new auto insurance policy since it did show some of the cheapest months to purchase car insurance.

Overall, in most states the cheapest month to buy a car insurance policy is going to be the month of December. You should typically avoid changing car insurance policies during the spring months of March and April as these tend to be the most expensive months to purchase a new policy.

In the end, the best way to get a good price on your car insurance is to make sure that you shop around. Take the time to look at several different insurance companies and remember to not only compare the price, but to also compare the coverage that you receive.

Free Auto Insurance Comparison

Compare over 200 auto insurance companies at once!

secured lock Secured with SHA-256 Encryption