If you are asked what time of the year is best for a car purchase, your answer is likely to be “when you have enough money”. And am sure you will say that for car insurance purchases as well. But chances are, you wouldn’t want to say that if you have a grain of knowledge of car insurance policies and their entirety. Unlike other insurance policies like Home, business, and all of those, the best time to buy the cheapest car insurance is quite strategic which is why you should take this content seriously as we unveil the best time, reason and why you should buy it at that moment.
Table of Contents
- How Does Car Insurance Renewal Work?
- Factors That Determine Car Insurance Rates
- How To Easily Renew My Car Insurance
- Insurance Companies with Cheap Auto Insurance Policies
- What Time Of The Year Is Car Insurance Less Expensive
- Tips To Reduce the Cost of Car Insurance If You Miss February
How Does Car Insurance Renewal Work?
Once your car insurance policy has expired which is usually over 6 months, your insurer will review your premiums based on a handful of factors to determine whether there should be an increase in the pricing of your car insurance policy or you should pay lesser. However, if you do not meet the criteria that influence the price of the insurance policy to be reduced, it might just be the right time to check around for a better car insurance company that favours your budget.
Factors That Determine Car Insurance Rates
While your insurer is reassessing your premiums, you are likely to now begin to pay lesser if you fall under these circumstances.
1. Getting Married
Does getting married really affect the insurance rate? Yes, generally speaking, married individuals receive lower auto insurance rates. This is due to data showing that married couples and families tend to file less expensive claims than single individuals. As a result, when you get married, insurance companies could give you a discount on your auto insurance.
2. Getting an Academic Degree
In general, savings decrease as you earn more degrees. For instance, a Ph. D. holder may only save $50 on car insurance compared to a master’s holder. It’s important to remember that many auto insurance providers provide excellent student discounts to high school and college students under the age of 25.
3. Renting an Apartment
People who rent their homes pay considerably higher auto insurance premiums than those who own their homes, by as much as 47% more, according to research published by the Consumer Federation of America.
4. Buying a Home
Purchasing a property is a significant decision that has to be well thought out, especially how it will affect your home and vehicle insurance costs. Because having a property can have a variety of effects on your auto insurance, owners of homes are viewed as being more stable and possessing higher credit scores.
5. Your State of Residence
Your state of residency affects both the types of coverage that are necessary for your state and the price of your auto insurance. While some states mandate uninsured motorist coverage, others mandate personal injury protection. To know what to look for, be familiar with your state’s insurance requirements.
How To Easily Renew My Car Insurance
Paying the renewal premium is all that’s required to renew your policy with many insurers. Your insurance provider will send you a reminder a month earlier to renew before the expiration date. Just make sure to renew your policy before the expiration of the current one to prevent a gap in insurance protection. Specific insurance companies can demand signed documents or additional activities in some states in order to complete the policy renewal. For more flexibility, you can opt for auto-renewal from your insurer, all you have to do is place a call for them to have it renewed.
Insurance Companies with Cheap Auto Insurance Policies
The study rates are based on those who are brand-new to the insurance market and can give you an idea of what you might expect to pay for auto insurance from a different provider. Keep in mind that car insurance rates are highly personalized, which means they are mostly influenced by your end as a driver. Your exact rate will vary depending on several conditions, including your residence, the vehicle you drive, and your credit ratings. Your driving history is also important to insurers. Some offences, such as a speeding ticket, or an accident where you were at fault, may raise your rates or make it more difficult to get a cheaper policy. However, the cheapest car insurance companies are below:
- State Farm
One of the cheapest car insurance companies is Geico. It also has the least expensive premiums, aside from USAA, for teenagers, adults, senior drivers and motorists with a clean driving record, and those with poor credit scores. The private American auto insurance provider, Government Employees Insurance Company (GEICO) has its corporate office in Chevy Chase, Maryland. It is the second-largest vehicle insurer in the country. As of 2017, GEICO, a fully-owned subsidiary of Berkshire Hathaway, insured more than 24 million cars owned by more than 15 million policyholders.
- Cheap policy for all types of motorists
- Offers impressive discounts
- Accepts those with poor car insurance credits
- Does not offer coverage for a new car
- Has a low credit for complaints resolution
The USAA has the lowest monthly vehicle insurance costs. It not only has the lowest prices overall, but it also has the lowest premiums for drivers who have received a speeding penalty or been in an accident. To join USAA, you must be a member of the military or a family member. Along with a number of other insurance and financial services, USAA offers comprehensive auto insurance coverage. There are dominant when it comes to the auto insurance policy in the military.
- No monthly maintenance fee
- No minimum deposit required
- Great mobile banking apps
- Free ATMs nationwide with fee refunds
- Special benefits for military personnel
- Requires U.S. military affiliation
- Very low-interest rate
- Very limited access to physical branches
Aside from USAA, State Farm provides the cheapest premiums if you’ve received a speeding ticket or been in an accident. Additionally, State Farm provides, on average, the cheapest car insurance coverage of any company if you have a DUI. A DUI is Driving Under the Influence. This implies drivers who have been penalized for this offence with their former insurance company can apply for State Farm.
- Has an A+ financial strength rating from AM Best
- Good discount opportunities for students and teenage drivers
- Usage-based insurance discount
- Has many local insurance agents across the U.S.
- Generous rental car and travel expenses coverage
- Does not offer Gap Insurance
- Their Car claim repairs can be done using non-original parts
What Time Of The Year Is Car Insurance Less Expensive
First, note that the rate at which an insurance company would set its pricing for the upcoming year is at the end of the current one. If an insurance company pays more claims to its clients than it earned in premiums, you can only expect an increase in car insurance the following year. While this policy may be tricky, it is best to shop for car insurance in the early months of the following year. Now to the main question, what time of the year is Car Insurance less expensive?
February is the best time of the year when car insurance is less expensive. Why is that? Have you ever heard of Car Insurance Day? Car Insurance Day is usually observed in the second month of every year in the insurance industry. While little is known about when the origin of this unofficial declaration. It is best to know that the insurance company lowered the car insurance rate for clients this month.
Secondly, fewer people are looking for insurance in February, making it one of the lowest months for new car sales. As a result, insurers frequently offer more affordable premiums in February in an attempt to seek new clients. According to the study, which examined more than six million bids between January 2013 and October 2018, a fully comprehensive policy purchased in February typically costs £475.60. The average cost for auto insurance in December was £560.80, which is 18% more than usual.
Tips To Reduce the Cost of Car Insurance If You Miss February
If you miss out on Insuring your vehicle in the month of February, you can always find a number of ways to get insurance for a cheaper rate. The following tips should be of help…
Opt For Multi-Car Insurance
Simply put, a multi-car insurance policy covers two or more automobiles. You can add all of your vehicles, as long as they are kept at the same address, to your insurance. Although some insurance providers may require that they must be kept at the same location, a physical garage is not necessary. It merely requires that the vehicles be parked at or close to the same address.
Fuse Your Car Insurance With Other Insurance Plans
When you purchase two or more insurance plans from the same firm and receive a discount, you are said to be bundling insurance. You can combine plans like auto insurance with ones for renters, homeowners, motorcycles, boats, and occasionally even life insurance. Insurance packages are an excellent method to reduce the cost of auto insurance.
When it comes to car insurance coverage, one of the most important aspects is driving history. Your auto insurance price can be influenced by your driving record. Yes, an insurance provider can obtain a summary of your driving history to assess the risk associated with insuring your car. You might have to pay a lesser vehicle insurance rate if your driving record is a clean sheet.
Having Anti-Theft Gadgets in Your Car
These gadgets significantly lower your car’s insurance cost while also enhancing the security of your vehicle. This is due to the fact that installing anti-theft systems in a vehicle almost eliminates car theft claims. While there is a little chance that your car might be hijacked, the insurance company lowers your fee believing that you’re less likely to cause them trouble.
Getting the best deals on car insurance may cause you more than just your money. You need information that serves as a guide to help you buy insurance at the right moment. You should have a clear picture of when you should buy car insurance or renewal now that you have gone through this guide. There are also helpful tips that should help you get better deals in the car insurance industry even when the best month to buy car insurance is gone. We hope this content helps!