What Is the Cheapest Month to Buy a Car
The calendar has less to do with your insurance rate than the car you choose and how you shop for coverage.
The month you buy matters less than you'd think
Car dealers have slow months and end-of-year clearance events, and you may pay less for the car itself at certain times of year. But your insurance premium is a separate calculation. It's based on the car's make, model, and safety record, your driving history, where you live, and your age, not the month on the calendar.
A car bought in December costs the same to insure as the same car bought in June. If you're shopping for a new policy or adding a car to an existing one, the better use of your time is comparing quotes across insurers rather than timing the purchase to a particular month.
What you buy changes your rate far more than when you buy it
The single biggest factor in what you'll pay to insure a car is the car itself. Insurers look at how much it costs to repair or replace, how often that model is stolen, and how it performs in crash tests. Two cars bought in the same week, from the same dealer, can carry very different premiums.
If you're deciding between a few models, ask each insurer for a quote on each one before you sign anything. The difference between a sedan with a strong safety record and a sports model with a high theft rate can be significant, and that difference holds no matter what month you drive it off the lot.
If you're replacing an older car you've owned for years, your current insurer already has a file on you. Ask them directly what the new car would cost to add, and compare that figure against quotes from other insurers before you decide.
How you set up the policy matters more than the purchase date
When you buy a car, you'll need to either add it to an existing policy or start a new one, and the choices you make at that point affect your rate more than timing ever will. Your deductible, which coverages you choose, and whether you qualify for any discounts your insurer offers all factor in.
If you're older and have carried insurance for years without a lapse, ask your insurer whether that history qualifies you for a loyalty or long-term policyholder discount. Some insurers also offer a discount for completing an approved driver safety course, but you usually have to send them the certificate yourself. Finishing the course isn't enough.
If your state requires or allows a reduced rate for low-mileage drivers, and you've cut back on driving, ask whether you qualify. This depends on your insurer and your state, so check directly rather than assuming.
Questions people ask about this
Does the age of the car affect insurance cost?
Yes, but not always in the direction people expect. A new car can cost more to insure because repairs and replacement cost more, while a car that's a few years old may qualify for lower comprehensive and collision coverage once its value has dropped. Ask your insurer how they'd rate the specific car you're considering, not just its age.
Should I drop collision coverage on an older car?
That depends on what the car is worth and what you'd be paid out in a claim. If the car's value is low enough that the payout would barely cover the deductible, collision coverage may not be worth the premium. Ask your insurer for the car's current value and compare that against what you're paying for the coverage.
Does my insurance rate go up when I add a new car to my policy?
It can, and the amount depends on the car you're adding, not the timing. Ask your insurer for a quote on the specific car before you buy it, so you know what the new premium will look like rather than finding out after the fact.
Is it cheaper to insure a used car than a new one?
Often, but not always. A used car's lower value usually means lower comprehensive and collision costs, but if it has a poor safety record or is a common theft target, that can offset the savings. Get a quote on the exact car, used or new, rather than assuming based on age alone.
Can I get a discount for being a long-time customer when I buy a new car?
Some insurers offer this, but it isn't universal and the rules vary by company. Ask your current insurer directly whether your years as a policyholder count toward a discount when you add or switch to a new car.
Compare quotes on the specific car you're considering before you decide what to drive off the lot.
Before you buy, get insurance quotes on the exact car you're considering, not a general estimate. Call your current insurer and ask what adding that car would cost, including any discounts you might already qualify for. Then get quotes from two or three other insurers on the same car so you're comparing real numbers. If you've completed a driver safety course or expect to drive fewer miles, ask each insurer whether that changes the quote, since the rules differ by company and state. Make the decision about the car's insurance cost before you sign for the car itself, not after.
