It could be right now)

If you’re looking for ways to trim your monthly expenses (and who isn’t these days?), you might be wondering if there’s a “right” time to shop for car insurance. This question is especially relevant now: Replacement costs for insurance companies have soared at nearly three times the rate of general inflation since 2020, according to the Insurance Information Institute, driving your car insurance rates up along with them.

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The truth is, while timing your insurance shopping can have an impact, comparison shopping is what really drives your savings. That’s because each insurance company calculates risk differently, which means the same driver could save hundreds or even thousands just by comparing quotes from multiple providers.

With that in mind, let’s explore when it makes sense to shop for car insurance and what impacts your rates — plus handy tips that could put more money back in your wallet in 2025.

Is there a best time of year to shop for car insurance?

While there’s no magical date circled on the calendar for finding the best rates, industry experts recommend starting your search about three to four weeks before your current policy expires. Shopping early not only gives you time to compare offers thoroughly, but it may also lead to better rates. Insurers like Liberty Mutual and Travelers offer “early shopper” discounts to drivers who plan ahead.

Some insurance experts also note that December and January might offer slightly better rates since fewer people are car shopping and buying car insurance then. However, the most significant savings will likely come from timing your search relative to your current policy’s expiration date and other factors — and not the season.

And while timing matters, certain life events and circumstances can matter even more when it comes to finding the lowest rates. It means your timing might be perfect right now.

When to shop for car insurance

Beyond renewal time, major life changes and unexpected circumstances often call for a fresh look at your insurance options. Here’s when you should start shopping, whether your renewal date is next week or months away.

Your policy rate increased

Even a modest 5% increase on a $1,500 annual premium means paying an extra $75 per year. Shopping around could not only eliminate this increase but potentially save you more — some drivers report finding savings from $350 to a whopping $3,000 just by picking up the phone (which was this writer’s experience).

What many drivers don’t realize is that rate increases often have nothing to do with their driving. Instead, they can stem from companywide adjustments, other drivers getting into more accidents or regional changes like higher speed limits. But that doesn’t mean all insurers are making the same hikes.

You’ve had a major life event

Life changes like retirement, marriage, divorce or fewer drivers on your policy can significantly impact your insurance rates and eligibility for new discounts. While some life transitions may be unexpected or challenging, they often come with opportunities to find new savings. Be sure to ask specifically about these discounts, as your insurer won’t apply them automatically.

💡 Expert tip: At the same time of consulting your insurance agent about big life events, consider talking with a financial planner or retirement advisor to review your overall insurance coverage needs and get comprehensive advice to ensure you’re getting the best value.

You’ve recently moved

Different areas have wildly varying insurance costs based on factors like accident rates, theft statistics and weather patterns. Even moving a few miles away could affect your rates — sometimes significantly.

Car insurance rates can double or triple depending on where you live, according to Bankrate data. Busy cities like Brooklyn, NY, Detroit, MI and Tarzana, CA cost the most, while rural areas and small towns — especially in states like Massachusetts and Vermont — tend to offer the cheapest rates.

Keep in mind that a change in the length of your commute could also reduce your miles on the road, granting you additional savings.

💡Expert tip: If you’ve moved to a property with a covered garage or gated community, be sure to mention this when getting quotes, as where you park could qualify you for additional discounts.

Your credit score has improved

While some states — like California, Hawaii, Massachusetts and Michigan — restrict the use of credit scores to determine your premium, many insurers use credit-based insurance scores to set rates.

A higher credit score could qualify you for lower premiums, and you don’t need to wait until renewal to benefit from this change. Some insurers will re-run your credit-based insurance score on request, so if you’ve been working on improving your credit, call and ask about a re-evaluation.

Indeed, one driver on an older MyFico post reported their premium dropped from $450 to $260 per month after their credit score increased 100 points over three years, while keeping the same coverage. As they said, it was “well worth the 15 mins on the phone.”

You’ve filed a damage claim

After filing a claim, your rates are guaranteed to spike at renewal time, often by 40% or more. While it’s tempting to stay with your current insurer, this is actually an ideal time to shop around.

Different companies have varying policies for those who’ve had a previous damage claim, and some might not increase your rates as much as others. And insurers like the General advertise policies for high-risk or “nonstandard” drivers.

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But you’ll only discover whether you can get a lower rate by comparing quotes from multiple insurers.

💡Expert tip: Ask about “accident forgiveness” programs when comparing quotes — a benefit that prevents your first at-fault accident from raising your premium. Some insurers like Allstate offer this benefit to new customers.

You’ve gotten a moving violation

If you’ve recently received a traffic ticket, comparing new quotes could help minimize the impact on your premium. Some insurers are more forgiving of minor violations than others, and shopping around could help you find more reasonable rates if your record isn’t spotless.

What goes into a car insurance policy quote?

Understanding what factors affect your car insurance rate can help you make smarter decisions about both your coverage and potential ways to save.

Here are the key elements that influence your rate:

• Coverage types and limits selected. The level of protection you choose shapes your premium — from your deductible amount to whether you want comprehensive and collision coverage. Higher coverage limits and lower deductibles mean higher premiums, while basic liability-only policies cost less but provide less protection.

• Vehicle make, model and age. Your choice of car plays a major role in determining rates. While safety features may help lower costs, expensive, high-performance vehicles and those with poor safety ratings typically cost more to insure. The Subaru Outback, Honda CR-V and Toyota Tacoma are among the cheapest vehicles to insure, according to Bankrate.

• Your location and typical driving patterns. This matters more than many realize. Urban areas often have higher rates due to increased traffic and theft risk, while rural areas might see lower premiums. Your daily commute distance and whether you park in a garage or on the street also factor into your rate.

• Driving history and claims record. Another big one, insurance companies look at your driving record over the past three to five years for accidents, tickets and claims. A clean record will typically earn lower rates, while at-fault accidents and serious violations like DUIs can dramatically jack up premiums or result in a loss of driving privileges.

• Credit score. In most states, insurers look at your credit score to help determine rates. Studies show that people who manage their credit well tend to file fewer claims. However, some states — like California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah — restrict or prohibit this practice for consumers.

• Annual mileage. The more you drive, the more exposure you have to potential accidents. Low-mileage drivers — typically under 7,500 miles a year — often qualify for lower rates. Some insurers even offer pay-per-mile programs for very low-mileage drivers.

• Age, marital status and other demographics. Statistical data shows certain groups tend to file more claims than others. Married drivers often see lower rates than single drivers, for instance, and mature drivers typically pay less than younger drivers up to a certain age.

• Policy bundling opportunities. Combining home, auto and other policies with the same insurer usually leads to discounts. Insurance companies value loyalty and often offer better rates to customers who bundle multiple products.

Dive deeper: 9 smart ways for seniors and mature drivers to save on car insurance

Can an insurer refuse to issue or renew a policy based on age?

No. The Age Discrimination Act makes it illegal for insurers to deny coverage or set rates based solely on age. However, insurers can legally consider several age-related factors when determining your policy costs, including:

• Medical conditions that affect driving ability

• Results of required state driving tests

• Recent driving history and accidents

• Vision requirements and restrictions

At the state level, regulations vary. Some states require additional screening for mature drivers, such as in-person renewal tests for drivers over age 70 or more frequent license renewals or vision tests. Check with your state’s Department of Motor Vehicles to understand local requirements that could affect your coverage.

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While a lower premium is attractive, it shouldn’t be your only consideration. A thorough comparison includes looking at the total value you’re getting for your money.

Here are key factors to evaluate before switching to a new insurer or policy:

• Coverage types and limits. Check both the basic coverage — liability, collision and comprehensive — and any additional protections that matter to you. A cheaper policy might more easily help you manage your budget but offer lower coverage limits or exclude important add-ons you need to stay financially and physically safe.

• Add-ons. Common add-ons include rental car reimbursement, roadside assistance and gap insurance, which covers the difference between what you owe on your car and its actual cash value if it’s totaled. Evaluate whether these add-ons fit your needs, and if the additional premium is worth it to you.

• Deductible options. Consider how different deductible levels affect your premium. While a $1,000 deductible will lower your monthly cost compared to a $500 deductible, make sure you can comfortably cover that higher amount if you need to file a claim after an accident.

• Available discounts. Most major insurers offer numerous discounts, including affiliation discounts for belonging to organizations like AAA or specific credit unions, safe driver rewards, defensive driving course discounts, mature driver discounts, low-mileage savings, bundling discounts and payment discounts for autopay or paying in full. Stacking discounts you’re eligible for can save you money.

• Claims process and customer service. Insurance is never as important as when you need help, and so it’s helpful to research how each insurer handles claims. You can do this by reading customer reviews, opinions and complaints on independent review sites like Trustpilot, Google Reviews, Reddit forums and the Better Business Bureau website.

• Company financial strength and reputation. Look for insurers with strong financial ratings from agencies like A.M. Best, which indicates their ability to pay claims reliably. Check how long they’ve been in business in your state and their track record with insurance regulators.

💡Expert tip: Don’t assume that you’re insurer will apply all discounts you’re eligible for. Rather, contact your insurer directly to review your eligibility for additional savings — and ask whether there are others you might not know about. You’ll be surprised what you qualify for.

Dig deeper: 96 best discounts for ages 50+: Where to save money for active agers, seniors and retirees

What to watch out for with auto insurance

While shopping for adequate coverage and better rates is smart, it also pays to be cautious when comparing your options, including:

• Use-based insurance programs. While use-based and telematics programs can offer savings, consider privacy implications and whether tracking devices might misinterpret defensive driving techniques as risky behavior. Some drivers have reported concerns about how their driving habits are monitored and evaluated.

• Too-good-to-be-true offers. Be wary of unsolicited insurance offers or rates that sound unusually low. Legitimate insurers typically won’t pressure you to make immediate decisions, and that incredibly “cheap” deal might be a scam or come with hidden fees.

• Coverage gaps. Ensure any new policy maintains appropriate coverage levels for your needs. The lowest premium isn’t always the best value if it leaves you underinsured on a fixed income.

Learn more in answers to common questions around comparison shopping for your next car insurance policy.

Will shopping for quotes hurt my credit score?

No. Insurance companies will conduct a “soft pull” of your credit for quote inquiries, which doesn’t affect your credit score.

How often should I compare car insurance rates?

Experts recommend comparing rates at least once a year, when your current policy is about to expire and whenever you experience a significant life change, like a move, getting married or retirement.

Will my current insurer match a competitor’s quote?

It might! Most insurers will work to retain customers by matching or getting close to competitive quotes, but you’ll need to ask your company specifically.

Can I switch insurance companies before my policy expires?

Yes — but ask whether any cancellation fees apply for ending your policy before the end of your term. Even with a fee, many companies typically refund unused premiums if you cancel mid-policy.

Will my auto insurance policy cover guest drivers?

Most insurance policies cover friends and loved ones who borrow your car occasionally, thanks to what insurance companies call “permissive use.” This means if you give someone permission to drive your car, your policy usually extends coverage to them. However, important limitations and considerations exist, especially for longer stays or frequent borrowing. Learn more in our guide to guest drivers and car insurance.

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About our writer

Kat Aoki is a seasoned finance writer who’s written thousands of articles to empower people to better understand technology, fintech, banking, lending and investments. Her expertise has been featured on sites like Forbes Advisor, Lifewire and Finder, with bylines at top technology brands in the U.S. and Australia. Kat strives to help consumers and business owners make informed decisions and choose the right financial products for their needs.

Article edited by Kelly Suzan Waggoner