When is Car Insurance Most Expensive?

Drivers who insure their cars in December can pay more than 15% more than those who insure in February, the cheapest time of the year, according to research by MoneySuperMarket. Many factors can influence the cost of car insurance, such as your driving history, location, the coverage you select, and the make and model of the car. Where you live can have a huge impact on car insurance rates, as each state has different regulations. Every auto insurance company sets rates based on dozens of factors, including your driving history, location, vehicle, and demographics.

Having bad credit has a surprisingly big impact on auto insurance rates in most states. On average, car insurance rates for drivers with bad credit are more than 71% higher than for people with good credit. Causing an accident can increase car insurance costs for three to five years afterwards. It's important to look for the cheapest insurance company after an accident, because each company considers factors such as an accident differently when setting prices.

Being caught drinking and driving will mean significantly higher prices for car insurance. On average, car insurance rates increase by about 93% for a driver with a recent DUI. Although minimum insurance is the cheapest option, it's not always the best option. If you're looking for coverage for your own vehicle after an accident where you're at fault, you'll want collision insurance.

In addition, if you have a loan for your car or it's leased, you may need to maintain collision coverage and comprehensive coverage. Knowing the average rates gives you an idea of what to expect, but it's just a starting point for a young driver looking for affordable car insurance. Rates can vary by hundreds of dollars a year, depending on where you live and the insurer you choose. Easily compare personalized rates to see how much switching to car insurance could save you.

Miriam Rosebrook
Miriam Rosebrook

Incurable bacon evangelist. Wannabe music practitioner. Subtly charming web maven. Typical social media specialist. Wannabe travel buff. Extreme internet fan.

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