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Licensed property and casualty insurance agent
NPN: 21630969
Updated
The best time to buy car insurance depends on your situation. You can typically switch insurers at any time, and most don’t charge cancellation fees for midterm policy changes. The timing that matters most is when your situation changes, like buying a new car, moving, adding a driver, or renewing your policy.
Let’s take a look at how timing can affect car insurance rates and how life events influence coverage. We’ll also provide tips on shopping and comparing auto insurance quotes to avoid overpaying for coverage.
Life events and changes in your risk profile often have a bigger effect on rates than the calendar date.
Shopping 30 to 60 days before your policy renewal can help avoid coverage gaps.
Comparing quotes regularly and providing accurate information ensures you get the best rates for your coverage needs without surprise premium changes.
No single best time exists to buy car insurance. Insurers don’t run seasonal sales or limited-time discounts the way retailers do. Insurers base rates on risk factors, not the calendar.[1]
The best time to comparison shop is usually a month or so before your policy renewal date. You should also shop after major life events, like a milestone birthday, an accident, moving, becoming a homeowner, or getting married or divorced. In most cases, your insurance shopping matters more than the specific day or time of year you buy.
Although no time of the year is the best to buy auto insurance, certain moments may be the right time to shop to ensure you’re getting the best rates.
Here are common timing triggers that can affect your insurance costs:
Timing Trigger | Why Rates Change |
|---|---|
| Buying a new car | Vehicle value and repair costs change |
| Policy renewal | New risk factors and pricing models apply |
| Tickets or accidents dropping off your record | Fewer recent violations can lower your claim risk and your premiums |
| Age changes that affect pricing | Drivers moving out of high-risk age brackets may see lower rates |
| Changing coverage limits or deductibles | Higher limits or lower deductibles increase premiums (and vice versa) |
| Reinstating coverage after a lapse | A prior lapse can signal higher risk and raise insurance premiums |
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Certain life events can also change how insurers price your car insurance policy. Insurance companies may adjust your car insurance rates when your risk profile changes, which means your premium could go up or down.
The table below highlights some of the most common life changes that can affect your auto insurance rates, regardless of timing.
Life Event | Why It Affects Car Insurance Pricing |
|---|---|
| Moving or changing your address | Accident, claim, and theft rates vary by ZIP code |
| Buying, leasing, or paying off a vehicle | Ownership status affects coverage needs; lenders may require full coverage |
| Getting married or divorced | Married couples are less likely to file claims, which can lead to better rates, while divorce may cause an increase |
| Adding or removing a teen driver from your policy | Young drivers are the highest risk age group, so they pay some of the highest rates |
| Tickets, accidents, or DUIs dropping off your record | Improving your driving record usually results in better rates |
| Improving your credit (where credit is used in pricing) | Drivers with better credit typically file fewer claims, so rates may go down |
| Paying off a car loan | You can choose to drop comprehensive and collision coverage once you no longer have a lender requirement |
Receiving your car insurance renewal notice is a good time to shop because rates typically change then, not because insurance companies offer special discounts. Insurers regularly update pricing models, and renewal is when those adjustments take effect.
You’ll typically get your renewal notice 30 to 60 days before your current policy expires. While you can switch car insurance at any time, comparing quotes during the renewal window gives you ample time to evaluate companies, auto coverage, discounts, and rates without risking a lapse in coverage.[2]
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Buying a new car is a great time to compare car insurance quotes. Your coverage needs may change with a new vehicle, and shopping now helps ensure you have adequate protection without overpaying.
Here’s why you should consider shopping for auto insurance when you’re buying a new car:
Different cars have different insurance costs. Car insurance companies consider factors like your vehicle’s value, type, trim level, safety features, and age when setting rates. Your new car may be more or less expensive to insure than your previous one.
New cars often require added coverage. If you’re financing or leasing your vehicle, you’ll likely need comprehensive and collision coverage, which you might not have on an older model. Consider adding other optional coverages, such as gap insurance and accident forgiveness.
Lenders and leases may require specific coverage levels. Lenders typically mandate full coverage and may even require you to have higher liability limits to fully protect their investment.[3]
Even if nothing major changes in your life, it’s a good idea to compare auto insurance quotes at least once per year. Regular shopping ensures your coverage matches your current needs, and helps you get the best rates and take advantage of new discounts.
Waiting for a perfect time to buy may mean overpaying for coverage you could get sooner at a lower price. Setting a reminder for your policy renewal date or the start of the new year can help you remember to compare quotes.
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Comparing quotes lets you see how different insurers price the same auto insurance policy. The following table shows average monthly quotes for liability-only and full-coverage insurance from the cheapest insurers, based on Compare.com data.
Company | Average Liability-Only Premium | Average Full-Coverage Premium |
|---|---|---|
| Country Financial | $43 | $88 |
| Auto-Owners | $46 | $87 |
| USAA | $52 | $102 |
| NJM | $53 | $95 |
| State Farm | $54 | $105 |
| Erie | $70 | $125 |
| Allstate | $74 | $146 |
| Mile Auto | $76 | $136 |
| Progressive | $80 | $134 |
| GEICO | $81 | $147 |
| American Family | $82 | $161 |
| Commonwealth Casualty | $83 | $176 |
| Safeco | $84 | $133 |
| The General | $85 | $206 |
| National General | $88 | $171 |
| Direct Auto | $92 | $163 |
| Mercury | $94 | $166 |
| GAINSCO | $97 | $210 |
| Dairyland | $98 | $245 |
| Travelers | $98 | $192 |
| Elephant | $105 | $169 |
| Bristol West | $106 | $206 |
| Farmers | $107 | $211 |
| AssuranceAmerica | $110 | $189 |
| Root | $110 | $176 |
| Anchor | $115 | $233 |
| Chubb | $119 | $223 |
| Clearcover | $120 | $208 |
| Plymouth Rock | $123 | $185 |
| Liberty Mutual | $129 | $203 |
| 21st Century | $133 | $253 |
| Shelter | $133 | $239 |
| The Hartford | $139 | $250 |
| State Auto | $153 | $291 |
| CSAA | $159 | $235 |
| Amica | $247 | $443 |
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Timing can help, but getting the best rate also depends on how you compare quotes. Providing accurate information about drivers, mileage, and prior insurance ensures that your quote closely matches your final premium and helps avoid surprises.[4]
Here are ways to save when shopping for car insurance:
Bundle policies. Bundling car insurance with home insurance or renters insurance through the same company can qualify you for multi-policy discounts.
Ask about new-customer discounts. Some insurers reward new customers or offer discounts for shopping online or before your renewal date.
Check for credit card perks. Some credit cards offer benefits like rental car coverage or reimbursement, so you don’t need to add it to your car insurance.
Use a comparison site or insurance agent. Car insurance comparison sites let you review multiple quotes at once. Independent agents can shop for you and help you avoid overpaying or buying unnecessary coverage.
Timing questions are common when thinking about switching insurance coverage. Below are answers to questions drivers often ask about the best time to buy car insurance.
Yes. You can buy car insurance at any time, whether you’re getting a new vehicle, switching companies, or experiencing a major life change, such as adding a teen driver. You usually won’t have to pay a cancellation fee, even if you cancel midterm.
It can be easier to switch when your current insurance ends — especially if you want to keep the same policy dates. Most insurers send renewal notices 30 to 60 days before your policy renews, giving you time to compare quotes.
Switching insurance companies is usually quick. Once you choose a new policy, coverage can begin immediately or on a scheduled date. Wait to cancel your old policy until the new one is active.
No. It’s a good idea to shop for new car insurance at least once a year, or after major life events like getting married or moving. Shopping often can ensure you get the best rates for your coverage needs and driving profile.
It can make sense, since improving your driving history usually leads to better rates. But tickets and accidents can take three to five years to drop off, and premiums vary by insurer, so you might find a good deal without waiting.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Licensed property and casualty insurance agent
NPN: 21630969
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
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