Why summer is best time to buy cheaper car insurance
James Connington
Katie Morley
DRIVERS should buy insurance in the summer because policies are most expensive in December, data reveals for the first time.
Over the past four years the cost of typical car cover has been 13 per cent higher in December compared to the monthly average for the rest of the year, comparison service Comparethemarket.com found.
It means drivers purchasing annual policies in December will unknowingly be caught in a price trap, whereby they will always pay the most for their insurance.
Surging prices in December are created by reduced competition from providers, as they wind down over the Christmas period, experts said.
It comes as average car insurance premiums are set to hit £800 per annum for the first time this month.
The average car insurance policy is 19 per cent more expensive in December when compared to the cheapest month – usually in spring or summer.
After the December rise the cost of car insurance always falls markedly in January when policy prices fall by an average of 8 per cent.
Simon Mcculloch, director at Comparethemarket.com, said: “For parts of December – particularly over Christmas and around New Year – there’s a limited availability of call centres and a lot of companies doing IT work. So fewer insurance quotes are generated.
“Due to the drop in competition, those who are offering insurance quotes are able to charge higher prices.”
He said January is a “very good time for low prices”, as every provider is back in the market, “quoting furiously to get a good start to the year”.