Auto insurance is crucial for any responsible car owner to have – but you may want to hold off on signing a contract with your insurance provider immediately after making that hefty purchase on your new sweet ride. You see, here’s a pretty important tidbit of information: auto insurance rates fluctuate immensely between the summer and winter months, and that’s not a fluctuation by a dollar or two. So, strap yourself in and get ready for a short joy ride through statistics land.
Wait, Significant Variations per Month?
Yep. We all know that rates can vary on any number of details – from the obvious things like: your age, gender, age of your car, the model of your car, and your credit history. But what’s also included among among coverage factors? Your state’s climate. So before you update your insurance plan, you may want to think about what month it is, and how the weather could affect your monthly premium.
According to the Department of Motor Vehicles (DMV), the national auto insurance average rate is slightly higher than $900 per year. Now think about the average by state. According to the Huffington Post, the average auto insurance rate in California is $1,428. In Michigan, the average is $2,500, according to the New York Times. Why, between states, is there such a considerable disconnect between insurance premiums? In part, it’s to due to the climate (and in this case, Michigan’s true ‘No-Fault’ ways). California is known for its mild winters and sunny disposition, whereas Michigan get buried under snow for months at a time.
The weather takes its toll on our vehicles, from getting a sun-bleached hood in the summer or a crack in the windshield in winter (Note: Never pour hot water on an icy windshield), insurance companies know when we will need them most. Weather also impacts driving conditions. According to the National Highway Traffic Safety Administration (NHTSA), the month of August has the largest number of traffic accidents. When the weather is fine and the roads seem clear, motorists tend to lose sight of their safety, as it’s dreary, stormy days on the road that are thought to be the most accident-inducing.
There are of course other factors that play a role in our monthly insurance charges too. State laws govern how much auto insurance coverage their motorists must have, and the costs between insurance agencies differs from state-to-state, city-to-city, and from town-to-town. So with all of these considered, what is really the cheapest month to purchase car insurance?
And the Cheapest Month is…
Nationally, the cheapest month to get auto insurance was the month of December. According to CNN, the reason for the variation between months is as high as it is because it has to do with the timing insurance companies use to update their costs as the New Year looms. With January usually comes inflation, the implementation of rate changes, and some new legislature, so you end up with a general spike in premiums across the board around spring. By the time the rates correct themselves, the year has nearly ended.
It’s Not All Cut-and-Dried
Not all states offer cheaper auto insurance on December. While the average car insurance payment in New Hampshire through a provider may be cheaper in the Yuletide, eleven states noted December as being their most expensive month. So before you buy your car insurance, check the date!
If you’re unsure where or how to start shopping for car insurance, CoverHound offers an online full-service portal that gives average car insurance payment options at several reputable insurance providers.
