When is the best time to get auto insurance?

Auto insurance premiums are lowest in December and most expensive in March. Drivers can save an average of 7.5 percent by waiting until December.

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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 insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 16, 2021

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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 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.

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Things to Remember...

  • Research has shown that car insurance premiums are lowest in December and most expensive in March
  • Insurance carriers typically send out policy renewal notices 30 days before the policy renewal date
  • You can cancel your current policy at any time but depending on your state and insurance provider, you may have to pay a cancellation fee
  • A comparison tool can help you find better coverage with the best company at a more affordable price
  • You can find a new policy and activate it once you receive your renewal notice

You can switch your car insurance at any time. However, you may benefit from waiting several months before switching. Research has shown that car insurance premiums are lowest in December and most expensive in March.

It is also important to note that some insurance carriers may charge cancellation fees if you cancel before your renewal date.

If you are ready to change your car insurance provider, a comparison tool can quickly help you find and purchase a new policy.

Start comparing auto insurance rates now by using our FREE tool above!

At the End of Your Current Policy

Insurance companies usually send out notices 30 days prior to the end of your policy. When they do, you are free to not renew your policy and choose another insurance carrier.

To accomplish this task, you should use a comparison quote tool to quickly shop around for a new car insurance policy.

Car insurance comparison tools allow you to enter information about yourself, your driving habits, your car and the type of policy you’d like.

Once you hit enter, the tool will search available policies from multiple insurance carriers and return results for the ones that match your insurance needs.

When you receive your results, you need to look at the insurance premium and compare the details of the policy against your current policy. In most cases, you will be able to find a better policy for less money.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

When You’ve Been Cancelled by Your Current Insurance Company

Car insurance companies can cancel car insurance policies for almost any reason.

Common reasons include not paying your premium on time, getting into too many car accidents, receiving a certain amount of points on your license within a certain period of time, or filing too many claims.

The good news is that your insurance company must notify you in writing if they plan to cancel your insurance policy, and they must provide you with an end date.

If your insurance company does not provide you with a letter or you feel your rights have been violated, you can usually file an appeal. States like Massachusetts and South Dakota offer documents on your rights if your policy is canceled against your wishes.

When you receive a letter from your insurance company notifying you of the cancellation of your car insurance policy, it is in your best interest to quickly find and purchase a new insurance policy from another carrier.

A comparison tool can help you quickly find and compare insurance policies from multiple carriers. Once you find a policy you can afford that meets your needs, you can purchase it online.

When to Cancel Your Car Insurance

You can purchase a new car insurance policy at any time. However, it is important to check with your insurance company and the regulations in your state to determine if you will need to pay any cancellation fees.

For example, in Connecticut, it is legal for an insurance company to charge a cancellation fee if the policy is canceled prior to the expiration date. The Connecticut insurance company is allowed to charge a percentage of the remainder of the policy or a flat cancellation fee.

According to MarketWatch, the cheapest month to get car insurance in the United States is December.

On average, drivers that switched their insurance policies in December saved 7.5 percent when compared to drivers that purchased new policies in March.

Drivers that live in Hawaii, Washington D.C. and Maryland can expect to save the most by purchasing their car insurance in December.

The most expensive month to purchase car insurance was March.

You can find and purchase a new insurance policy at any time. However, some insurance companies may charge cancellation fees for canceling your policy in the middle of your term. To find better coverage at a more affordable rate, you can use a comparison tool.

Enter your ZIP code to start comparing rates immediately!

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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