Cheapest month to buy car insurance revealed - how much can you save?

21 February 2020

New research reveals the best and worst months to take out car cover

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February is the cheapest month to buy or renew your car insurance policy, according to new data from comparethemarket.com.

The price comparison site analysed monthly fluctuations in the cost of motor insurance over the last seven years.

It found that average car insurance premiums are £37 cheaper in February than the rest of the year.

Drivers who take out a policy in February pay £629 on average compared to £666 for the rest of the year.

December is the most expensive month to buy insurance when the average premium is £726 – almost £100 more than in February.

Car insurance policies bought in February don’t have to start in the same month to benefit from cheaper prices.

This means that drivers can shop around for a deal now that starts later in the year.

What affects the price of car insurance?

Car insurance providers take a number of factors into account when calculating how much you pay for cover.

This includes your annual mileage, the make and model of your car and your previous claims history.

Some providers may also offer discounts on car insurance premiums to attract new customers.

This ‘dynamic pricing’ model means that the cost of car insurance may vary throughout the year depending on the level of demand at a particular time.

Dan Hutson, head of motor insurance, comparethemarket.com, says: “Insurance is a complicated business and providers judge the cost of a policy on a wide array of factors.

“ However, this data clearly shows that prices change depending on which month you buy insurance. The figures imply that you could save almost £100 if you were to buy a policy in February vs. December.

“With the cheapest month now ahead of us, consumers should take advantage of the potentially cheaper prices and switch to a more competitive deal.”

How to get cheaper car insurance

Whether you’re looking for a new car insurance policy or hoping to renew, these tips can help you find the most competitive car cover.

1) Be strategic

It’s best to start looking for policies as early as possible to give you enough time to find the right deal. Aiming to renew your car insurance 20-26 days before your policy ends can help you save up to 40%.

2) Shop around

Shopping around for car cover can help you find the best deal for your motor. Price comparison websites allow you to compare hundreds of offers quickly and easily. It’s also worth researching the level of customer service each provider offers, to ensure that your claims and queries would be handled efficiently.

3) Read the terms and conditions carefully

Once you’ve got a few providers in mind, have a look at the terms and conditions of each policy carefully to make sure you’ll get cover for the things you need. If anything’s unclear, get in touch with the provider for clarification. Once you sign up to a policy, you won’t be able to claim for things that are expressly excluded.

Comments

Saving money on insurance

There are loads of hints and tips around which will help you lower the price of premiums. However, one of the easiest is phoning insurers directly rather than relying on price comparison sites. By speaking to someone you can negotiate and discuss your needs - which you can't do with a computer algorithm.

All of the relevant phone numbers can be found on our website to save you having to find them.

Sharon Mawson, QuickPages

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