- There isn't a universal best time to shop for car insurance. Shop after a change in your personal situation or driving history.
- Comparing quotes before your current policy is up for renewal can make sure you have enough coverage at a reasonable cost.
- You can switch carriers at any time, and the key is to review your coverage on a regular basis.
Car ownership isn't cheap. According to data from AAA, the average cost to own a new car shakes out to $12,863, or $1,071.92 a month. With rising fuel costs, depreciation, and hefty price tags on cars, you might be wondering if you should shop around for a new policy. And if so, if there's a particularly good time to do so.
There isn't necessarily a single, general best time of year to purchase auto insurance, explains Loretta Worters, vice president of media relations for the Insurance Information Institute.
Recent research from insurance comparison platform Luva points to that: Among US insurance agents and brokers who sell auto insurance, 34% say there is no clear season when shoppers are most active. And application data agrees: No single month is the busiest every year.
Here, we'll give you pointers on when might be a good time to compare rates for car insurance and get the right coverage for you:
The best time to shop for car insurance isn't a season or month
Data from Luva finds that, in 2024 and 2025, rates of car insurance shopping ran above average in the early part of the year, from January to March. However, there's no single month that was consistently the slowest.
Really, you can shop for car insurance any time, explains Catherine Valega, a CFP® and founder of Green Bee Advisory. Plus, you can switch carriers at any time, even mid-policy.
So instead of focusing on a particular month or season to gather quotes and comparison-shop, tie your shopping to changes in your life, driving habits, or driving history.
For instance, if you're:
- Buying a new car
- Recently moved or are planning to move
- Getting married or divorced
- Purchasing a home
- Changing the number of drivers in your household
- Experiencing recent changes to your driving record
- Driving your car a lot less or a lot more
- Paying off a car loan
That's because these changes can impact either the amount of coverage you need, the cost of your policy, or both.
"Insurance companies consider factors like your ZIP code, local accident rates, and claims history when determining your premiums, even if you have a clean driving record," says Jovan Johnson, a CFP® and cofounder of Piece of Wealth Planning.
And because you can shop for new insurance and change carriers anytime, if you switch insurance and have already prepaid, you would be pro-rata reimbursed, Valega explains.
Time shopping for car insurance to your policy renewal
Generally, it's a good idea to shop around for car insurance at least once or twice a year, ideally before your current policy is up, Johnson says. Sometimes, staying with the same provider for years doesn't necessarily mean you're getting the best rate.
"Shopping around gives you some leverage," Johnson says. "Your current provider may be willing to offer a better rate, or you may find that switching providers makes more financial sense."
"While some insurers may introduce rate changes at the beginning of the calendar year, rate adjustments occur throughout the year and vary by insurer and state," Worters says. "These changes are also subject to state regulatory requirements." So it's probably best to time shopping around to your own situation.
Give yourself plenty of time to shop for car insurance
Valega explains that drivers typically shop about 30 to 45 days before their policy renewal. If you give yourself at least several weeks before your current policy's renewal date, that might be enough time to compare coverage options, deductibles, and available discounts, Worters says.
"Shopping around before a policy renews can help consumers understand their options and determine whether another insurer offers a more competitive rate for comparable coverage," Worters says.
When getting car insurance quotes, the key to making sure you get an apples-to-apples comparison between your current policy and quotes from other insurance carriers is to match your coverages exactly, says Nathan Gerston, a CFP® at Jim MacKay Financial Planning.
This includes additions that have been built into your existing policy based on your tier level. For example, accident forgiveness because you've been with your current car insurance company for five years without needing to file a claim.
And while you can also ask what discounts are available, you'll want to avoid sacrificing important coverage, Worters says.
Make car insurance part of your end-of-year financial housekeeping
Alongside making tweaks to your budget and financial goals, consider adding shopping for car insurance to your to-do list in December.
You can sit down and make sure you have sufficient coverage for your car, that the deductible is something you can reasonably afford, and that you've scooped up any available discounts.
"December can be a convenient time to review auto insurance as part of year-end financial planning, but consumers should not wait until December if their policy is renewing sooner or their insurance needs have changed," Worters says. "The most important consideration is not when consumers shop, but that they compare coverage and prices regularly."
Created by the Commerce Team at Business Insider with Luva.
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