Is December the most expensive month to insure your car? | Adrian Flux (2025)

FAQs

What is the cheapest month to buy car insurance? ›

Why Is August The Cheapest Month For Car Insurance?

Drivers who insure their cars in December may pay more than 15% more than those who insure in February, the cheapest time of year, research by MoneySuperMarket found. However, December does not need to be more expensive than any other month of the year when using an insurance broker.

Yet you should never just auto-renew as it's likely you'll pay more than you need to. You should always compare prices, and we've found that the best time to buy car insurance is 20 to 26 days ahead, as this is usually the cheapest.

Your car insurance may be expensive because of your driving history, location, vehicle or credit history. Recent insurance claims and violations can increase your rates for three to five years. On the other hand, it's possible you also just have a more expensive car insurance company.

Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.

Is $100 a month for car insurance good? Our cost estimates show that 35-year-old married drivers with good credit and clean driving records pay an average of $148 per month for car insurance. Paying around $100 per month for quality auto coverage is a good price.

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.

While new cars may be more expensive to insure due to their higher value, older cars may be costly as well. Although they may have a lower value, older cars may also have expensive parts that could make repairs expensive.

Over the years, premiums generally decrease as drivers gain more experience behind the wheel. But as drivers reach their senior years, premiums can creep back up. In general, this is due to risk factors associated with each age group.

Who normally has the cheapest car insurance? ›

So, your birthday can be a good time of the year to buy car insurance as young drivers can see lower rates as they get older. A month or so before your auto policy renew: Thirty or 60 days before your car insurance renewal date is a good time of the year to review your current coverages.

On average, drivers with poor credit pay 115 percent more for full coverage car insurance than those with excellent credit. California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.

Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.

Car insurance premiums increased 19.5% between June 2023 and June 2204, according to the Department of Labor's July 2024 Consumer Price Index. The reasons are many and include lingering inflation, the rising cost of repairs, an uptick in severe weather and the number and severity of accidents.

There is typically a discount if you decide to pay your car insurance yearly, but it is a larger upfront expense that may not fit into your budget.

While it can seem arbitrary, there are actual reasons you can see your price go up and down. Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.

The most substantial reductions in auto insurance rates typically come as teen drivers get older, usually when they hit 18 or 19 years old. Rates continue to decline as you age, particularly once drivers pass the age of 25.

When do car insurance premiums go up — and why? Policies from most insurance companies get packaged in six- and 12-month policy periods. Assuming your coverages, driving record, and other basic criteria remain the same for that entire term, your premium typically won't change.