If you look at the auto insurance industry as a whole, December is often a good time of year to look for quotes. Because car insurance is regulated by the state, you usually won't find an insurer that offers promotions or discounts for the holidays, according to The Zebra. Generally, the closer you get to your renewal date, the more likely you are to pay for your car insurance. The cheapest time to renew your car insurance policy is usually two to four weeks before the renewal date.
Why? Because insurers know that you'll increasingly want to have your coverage the closer your current policy gets to expire. Their logic is that this will make you more willing to swallow a higher price. There are two main reasons why car insurance costs may increase at the time of renewal. The first is economic factors, such as the tax on insurance premiums, the costs of repairing vehicles and the number of uninsured drivers on the road.
When is the best time to buy car insurance? MoneyGeek recommends looking for car insurance at least once a year, but certain circumstances may also require you to reevaluate your options as soon as possible. Here are some common situations that should lead you to seek car insurance. It's tempting to buy a new car that looks great and is fun to drive, but you should also consider safety and insurance costs. Keep in mind that looking for new insurers doesn't necessarily have to be around the renewal date, since you can change car insurance companies even halfway through the life of your policy.
You can also pay more if you've moved to an area with a higher level of car crime or if you've changed jobs and are now engaged in what insurers consider a risky occupation. For starters, it's cheaper to pay for car insurance in advance on an annual basis than in monthly installments, since you'll be charged “interest” to be paid monthly. Any life change may require a reevaluation of your car insurance policy, whether you're buying a new car or buying a house, as some changes in your life can affect your premiums. Auto insurance providers often require you to pay more for extras, such as complimentary car coverage, windshield coverage and legal coverage.
However, this decision doesn't mean that your current car insurance provider will necessarily offer the cheapest price when your car insurance policy is pending renewal. Fortunately, there are ways to keep your car insurance costs to a minimum, such as knowing when is the best time to renew your coverage. If you buy a new car with modern anti-theft technology, you can be eligible for discounts, but keep in mind that the replacement value of your new policy will be higher than that of your old policy. If you're not happy with your current car insurance company, you can start comparing prices and switching providers.
To learn more about Travelers car insurance, find a local independent agent or contact your Travelers representative.
