Yahoo Finance Car insurance is cheapest in February and August
February and August are the cheapest months on average to take out fully comprehensive car insurance, according to research by MoneySuperMarket.
The price comparison wesbite analysed 49 million car insurance quotes from 2013 to 2019, to find that August and February have been the cheapest months to take out car insurance, three times each, for six out of the previous seven years.
For the last two years August has been the cheapest month for car insurance, with motorists paying an average of £469 for their policy in 2019 – a saving of 10% or £52 compared to the most expensive month of December, when it cost £521.
READ MORE: Car insurance premiums in Britain rise 5% in 2019
In 2018, those who purchased car insurance in August paid £495, compared to £538 in December.
In 2017, February was the cheapest month with premiums costing an average of £544 – a saving of 10% or £62 compared to the most expensive month of November, when they would have paid £606.
Motorists who took out a fully comprehensive policy in December 2016 paid £644 – an increase of £100 compared to those who bought their policy just two months later in February 2017, who paid £544.
READ MORE: Over-30s paying more for car insurance premiums, study finds
The figures also reveal that the average cost of fully comprehensive car insurance premiums has continued to rise, from £435 at the end of of 2013 to £503 at the end of 2019 – an increase of £68, or 16%, over the seven-year period.
While longer-term analysis shows an increase in the cost of premiums, data from MoneySuperMarket’s Car Price Monitor shows that average premiums have declined year-on-year. The average cost of a car insurance premium at the end of 2019 was £503, compared to £527 in 2018 – a 5% fall..
Younger drivers continue to pay the highest prices for car insurance, with those aged 20 to 24 paying an average of £1,008, and those aged 17 to 19 paying an average of £995 for a fully comprehensive policy.
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Meanwhile, drivers aged 65 or over pay an average of £286 – over three times less than drivers in the 17 to 19 and 20 to 24 age groups.
“People purchasing a car often wait until December to secure a bargain, as dealers try and lock in sales before the end of the year. The only downside, is that it is generally the most expensive time to buy a car insurance policy,” Emma Garland at MoneySuperMarket said.
“Our data shows that February and August are typically the cheapest months to buy car insurance. This could be because fewer cars are bought, due to people holding off for the new vehicle plates that are issued in March and September.
READ MORE: How to cut your car insurance costs
“Not everyone will have the choice to take out a policy in February and August, but there are still ways to make significant savings. Always shop around at the time of renewal to ensure you get the best deal for you – doing so could save you £270.”
