Getting auto insurance coverage is about finding the balance between cost and benefit. If anything, insurance companies have mastered the art of selling you things you don’t really need. They start out with a simple requirement, and the offer add-ons that, well, make a lot of sense. Until they don’t.
It’s your job to figure out what you need and don’t need – and one of the things you don’t need is to pay for an insurance plan that drains your resources.
In the United States, auto insurance usually costs more to purchase in the early to mid year (think during March and April), and it is at its cheapest in December. This isn’t true in every state, and the reasoning isn’t conclusive due to a lack of research, but there are some theories.
Speculation is bad for business, but it can help people rationalize some of the stranger things in life – and when it comes to car insurance, the guesswork makes sense. As the New Year approaches, a new fiscal year begins – and at that point, insurance companies are likely to adjust their rates based on new risk forecasts for the year. This, combined with the fact that rate implementations don’t kick in until January, makes December the cheapest month, according to CNN Money.