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.
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.
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.
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.
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.
| 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% |
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.
Direct Line and NFU Mutual are just two of the big car insurers not on comparison sites. So is it worth going direct?
Read our guide to find out how to find insurance for your cat N write-off, average cost and whether or not you can keep your category N car.
Learn how to find insurance for your Cat S write-off, average cost and whether you can keep your category S car.
Read our guide to understand why honesty is always the best policy to avoid your car insurance being voided or cancelled.
See how car insurance works if you’re over 30, and ways you can save as a new driver.
Check out our list of the top 10 car insurance companies to find the right cover for your car. Compare options to find cover that won’t break the bank.
A list of popular car insurers, A to Z.
Everything you need to know about pausing or suspending your car insurance coverage while your car is off the road.
Find out what car insurance should cost you, what impacts the price you pay and how you can pay less.
Find out how agreed value car insurance works and if it’s the right option for you.