Seasons can affect the price of auto insurance study finds

Published: February 28, 2018

Updated: July 24, 2018

Author: Luke Jones



Auto insurance premiums are individually assessed per customer and based on numerous criteria, such as driving record, vehicle, and location. However, could the time of year you decide to buy insurance matter? According to a new study, the answer is year, rates tend to be more affordable and certain times of the year.

LowestRates conducted a two-year study in Ontario, Canada’s most expensive auto insurance market. The company found premiums were lowest during the months July through October, basically the summer and early falls seasons. Rates fell as much as 6% in August 2017 compared to the average across the year.

In contrast, the months January through April (winter and early spring) resulted in premiums spiking, as much as 6% in February. LowestRates points out this appears to be a trend because the same happened in 2016.

“We were really surprised by the data,” managing editor John Shmuel told CTV News. “Summer, in general, is a great time to get auto insurance.”

The company says the seasons are obviously important in deciding premium rates. It seems summertime could be more affordable because of higher car sales in warmer months. In Ontario, the increasingly competitive market could help when vehicle sales increase.

“Ontario has a lot of insurance companies. We believe that these insurance companies are artificially lowering their prices,” he observed.

“No-one wants to test drive a car in the snow. It’s stressful. It isn’t fun. You don’t want to be driving your new car when there is all this salt on the ground,” Shmuel added. “[Sales] correlates with the seasons.”