When is the best time to buy car insurance?

When is the best time to buy car insurance?

The best time to buy car insurance is of course when you need it. Driving without at least third party cover is illegal, and so, if you have a new car and no insurance cover, you must take some out before you get it on the road.

But if you have some flexibility and can plan when you buy your car or start driving it, some times of the year are considered better for getting a good deal on insurance.

That said, opinions vary on when the ideal time to buy insurance is. In 2020, one study of 49 million car insurance quotes covering 2013-2019 found that August was the cheapest month for car insurance in 2018 and 2019. However, February was the cheapest in 2017, for the third time since 2013. Rises or falls in premiums can be driven by events such as changes in the rules around injury compensation, or insurance premium tax, so records from previous years aren’t always helpful.

However, what is worth considering are any major life events you have coming up. If you’re getting married and may be changing your name, moving house, changing jobs or having a baby, you must let your insurer know. These changes can affect your premium, and so, if possible, it’s best to get your insurance after they take place.

How much can you save on car insurance by buying at the right time?

According to one recent study, people who bought their car insurance in August 2019 paid on average 10% less than those who bought in December 2018. But that doesn’t necessarily mean this pattern will repeat itself; the price of your car insurance depends on a range of factors about you, such as where you live and your driving history, and so it will vary.

How does your timing affect the availability of car insurance?

Just like in any other market, the motor industry has highs and lows. Many people wait for the December sales to buy a new car, which could be why December is considered the most expensive time to buy car insurance.

February and August tend to be quieter months for car buying, due to people holding off for the new vehicle plates that are issued in March and September. This might be why they are sometimes cheaper months for car insurance, as insurers may want to entice people to buy in their quieter periods.

Why is car insurance often cheaper if you buy it in advance?

The cost of your insurance is all about how much of a risk the insurer deems you to be, meaning how likely you are to make a claim and cost the insurer money.

One of the reasons your insurance is more expensive the later you leave it is that the insurance company is making the assumption that, if you’re late in sorting this out, you might be a generally disorganised person, which can mean you’re typically speeding to get to places on time.

Another reason is that the insurer might think you’re looking for last minute cover because of some emergency, like buying a new car or having to drive somewhere specific on short notice. Their reasoning is that, if you’re desperate, you’re more likely to accept higher rates. Note that if you do need short term or instant cover, you might want to look at temporary car insurance to tide you over until you can sort out your annual policy.

Does the optimal time to buy car insurance differ by insurer?

It can do. Prices can vary greatly between insurance companies, and demand can fluctuate as well, affecting premiums. Some changes, such as a rise or fall in insurance premium tax, will affect insurers and premiums across the board.

Finder survey: How confident are you that you understand how car insurance premiums are calculated?

Response	Male	Female
Somewhat confident	40.76%	31.02%
Not very confident	29.62%	35.54%
Not confident at all	13.32%	25%
Very confident	16.3%	8.43%

Source: Finder survey by Censuswide of 1032 Brits, December 2023

How far in advance can I buy my car insurance?

Some insurers will let you get a quote a month or more before you want your policy to start. However, getting your insurance too early can actually cost you more.

A 2018 study of several comparison sites found that around three weeks in advance is the ideal time to buy your car insurance. The study found this could save you £589 – £531 compared to buying it 30 days in advance and £567 – £1,156 compared to buying on the same day you would like the cover to start.

This is also true for the best time to renew your car insurance.

Frequently asked questions

• What is the cheapest day to buy car insurance?

  There’s no definitive answer to this, as it will vary. However, if you consider that car insurance is cheaper during quieter times, you might want to search for a quote during office hours on weekdays (if you’re able to), when fewer people are likely to be doing it.

  Depending on your circumstances, this might not make a difference, but you can always check prices on different days and different times to make sure (just don’t leave it too close to the date you need the cover, as that will cost you extra!).

• What is the best month to buy car insurance?

  According to one recent survey, August and February were cheap months to buy car insurance and December is thought to be the most expensive. But this can change depending on external factors like rule changes and tax.

• When should you shop for your car insurance?

  Around three weeks before the time you would like the cover to start is considered to be the ideal time. This is based on a recent study of quotes obtained from several comparison sites.

*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (Mar ’24). 51% of car insurance customers could save £524.68

Was this content helpful to you?

Yes No

Thank you for your feedback!

Ronny Lavie

linkedin

Ronny Lavie was a deputy editor at Finder, specialising in insurance content. She has almost a decade of experience writing about financial topics, including five months spent as the interim managing editor for the Fintech Times newspaper. Ronny has a Master of Arts in Creative Writing from London Middlesex University.

More guides on Finder

• Women-led firms lag behind in startup funding despite equality drive

  The gulf between the amounts received by men vs women from government-backed startup loans has widened, despite calls for more funding for women entrepreneurs.

• Kroo vs Monzo: Which is the best?

  We take a closer look at two of the digital banking brands leading the way in the UK. Compare Kroo and Monzo in our side by side guide.

• How to buy Rubrik (RBRK) shares when it goes public

  Everything we know about the Rubrik IPO, plus information on how to buy shares.

• Problems in the growth pipeline? The female startup funding gap

  Is the UK leaving £250 billion in growth on the table? Our free report shows how female entrepreneurs aren’t getting the same startup funding as men.

• Robinhood statistics 2024: Users, revenue and growth

  We look at the latest statistics on global trading app Robinhood, including the number of users, revenue and profitability.

• Financial adviser vs coach: Who to talk to about your money

  From financial advisers to accountants – if you need help with your personal finances, here’s who to talk to about what.

• Best ways to invest £20k

  Discover how you can build wealth by investing £20,000 and explore some of the top strategies for investing your money.

• Zing review: An international money transfers app from HSBC

  The multi-currency account could be a cost-effective option for anyone who is going abroad, provided you don’t plan to withdraw lots of cash.

• What is a good salary in London?

  According to the latest figures, a single person living in London would need a gross salary of £37,000 to be financially stable.

• 1 in 4 Brits plan to open an ISA in the new tax year

  More than 13 million Brits plan to open an ISA after the new financial year starts on 6 April, according to a new Finder survey.

Feedback

How likely would you be to recommend finder to a friend or colleague?

0

1

2

3

4

5

6

7

8

9

10

Very Unlikely Extremely Likely

Required

Submit

What is your feedback about? What is your feedback about? Site speed Content quality Ease of use Ease of finding information Site appearance Other Required

Please tell us how we can improve Required

Terms and Conditions and Privacy Policy. Submit

Thank you for your feedback.

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.

×

Advertiser Disclosure

finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

Close

We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.

Learn how we maintain accuracy on our site.

Close

Go to site