Is December the most expensive month to insure your car? | Adrian Flux (2024)

FAQs

Is insurance more expensive around Christmas? ›

Drivers who insure their cars in December may pay more than 15% more than those who insure in February, the cheapest time of year, research by MoneySuperMarket found. However, December does not need to be more expensive than any other month of the year when using an insurance broker.

In general, there isn't a specific time of the year that is considered "the best" time to shop for car insurance. That being said, some experts think December is a good time to get quotes. This is because some insurance companies may make rate adjustments at the beginning of the new year.

If you do nothing, it'll usually automatically renew at that new price, so always have your renewal date in your diary to take action. The cheapest time to get quotes is 23 days ahead of your renewal date – your cover becomes more expensive the closer you get.

The cheapest time to get quotes is 20 to 26 days ahead of your renewal date – cover becomes more expensive the closer you get. It's the same if you are buying car insurance for the first time.

Generally, the closer you get to your renewal date, the more you're likely to pay for your car insurance. The cheapest time to renew your car insurance policy is generally about two to four weeks before your renewal date.

Making Space for Newer Models

October, November, and December see a lot of new makes and models come onto the scene in preparation for the new year. But this means the old inventory has to find a new home so there's room on the lot. Meaning… prices will drop.

New car insurance data has revealed that December is the most expensive month to insure your car. MoneySuperMarket.com found that it was 15 per cent more expensive to insure a car in December compared to in February.

Car insurance typically drops as you grow older, when you drive safely for three to five years following an accident or citation, and when you switch to a cheaper company. Both men and women see the steepest drop in car insurance costs between ages 18 and 19.

Why is my car insurance so low? ›

Drivers with clean motor vehicle records and no at-fault accidents typically get the cheapest car insurance. An at-fault accident will usually cause rates to increase more than a speeding ticket conviction. But if you have a severe infraction, like a DUI conviction, you can expect your rates to increase substantially.

The cost of car insurance drops slowly as your car gets older. However, the value of your car drops quickly as it ages. For example, you could be paying $2,000 per year to have full coverage on a 10-year-old car that's worth $6,000.

It's recommended that you shop around for car insurance quotes at least once a year. However, to make sure you're getting the absolute best rates, consider shopping for new quotes every six months — the length of a standard policy. An easy way to remember when to shop is to watch for the end of your current policy.

While it can seem arbitrary, there are actual reasons you can see your price go up and down. Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.

Shopping after Christmas might mean waiting longer for a particular item, but the money you save on that product will make the wait worthwhile. You'll see a lot of deep discounts on products ranging from electronics to clothing, and just about every other retail item that is updated in the January inventory turnover.

“Prices for holiday decorations drop significantly after Christmas as retailers clear out seasonal inventory,” said DiManno. By planning ahead and buying decorations during post-holiday sales, frugal people can see some substantial savings.

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.

The rise in insurance costs is in addition to historically high prices for new and used vehicles since the coronavirus pandemic, as well as rising costs to repair vehicles.