Labor Day Car Buying Insurance Guide
 Written by Derek San Filippo Derek San FilippoDerek has written 100+ articles on property & casualty, health and life insurance topics as an insurance expert for Smar... Read more |  Edited by Dan MarticioDan MarticioDan Marticio is the content manager at SmartFinancial and has written 150+ articles across multiple insurance verticals.... Read more |
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Labor Day car buying discounts and deals are common and can make already expensive cars a bit more affordable for car buyers. This guide provides a comprehensive overview of car buying and insurance options available in honor of the Labor Day holiday.
From special financing rates and lease deals offered by major automakers and dealerships to tips on insuring both new and used vehicles, we’ve got you covered.
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Key Takeaways
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Is Labor Day a Good Time To Buy a Vehicle?
Labor Day weekend car buying discounts are all over the place. RAM, Hyundai, Nissan, Toyota and Honda all have deals that can help save you money, with some dealers offering 1.9% financing for two years. Others are offering bonus cash incentives up to $3,000. There are lease deals available as well.
Do Car Dealerships Offer Discounts on Labor Day?
According to CARFAX, many major automotive manufacturers and dealers are offering Labor Day deals on select models in 2023, including Acura, Cadillac, Ford, RAM and Toyota. We have listed them below but keep in mind that the dealers may not apply across the board and may be available only at participating dealerships.[1]
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Vehicle Type |
Labor Day Deal |
|---|---|
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Acura RDX |
$459 per month for 48 months with $5,299 due at signing |
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Alfa Romeo Tonale |
7.96% financing for up to 60 months |
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All used 2018-2021 BMW certified pre-owned (CPO) models |
4.99% financing for 36 months and no payments for 3 months |
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Buick Encore GX |
$169 per month for 24 months with $6,209 due at signing |
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Cadillac XT4 |
1.9% financing for 36 months plus $500 bonus cash |
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Chevrolet Silverado 3500 |
1.9% financing for 36 months, or $500 cash allowance |
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Chrysler Pacifica Hybrid |
$783 financing per month for 39 months with $4,749 due at signing |
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Ford Mustang |
1.9% financing for 72 months and $1,000 bonus cash |
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Dodge Challenger |
6.9% financing for 72 months, or $2,000 cash allowance |
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Genesis GV60 |
$599 per month for 36 months with $5,999 due at signing |
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GMC Sierra 3500 |
3.9% financing for 60 months |
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Honda Accord Hybrid |
$359 per month for 36 months with $3,699 due at signing |
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Hyundai Santa Fe |
3.29% financing for 60 months and $1,000 bonus cash, or up to $2,500 cash back |
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Infiniti QX50 |
$549 per month for 36 months with $6,449 due at signing |
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Jeep Cherokee |
7.96% financing for 60 months and $1,000 bonus cash |
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Kia Sportage |
$259 per month for 24 months with $3,499 due at signing |
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Lexus UX Hybrid |
$499 per month for 36 months with $3,999 due at signing |
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Lincoln Navigator |
3.9% financing for 72 months and up to $3,000 bonus cash |
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Mazda CX-30 |
$288 per month for 33 months with $2,999 due at signing |
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Mitsubishi Outlander |
3.9% financing for 72 months or up to $1,000 cash back |
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Nissan Rogue |
$309 per month for 36 months with $4449 due at signing |
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RAM 3500 |
7.96% financing for 72 months and $1,500 bonus cash |
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Toyota Camry |
3.99% financing for 48 months, or $750 cash back |
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Volkswagen ID.4 |
$349 per month for 39 months with $4,999 due at signing |
Source: CARFAX
How Do I Insure a New Car on Labor Day?
Insuring a recently purchased new or used car is a straightforward process and can often be completed before you even take the vehicle home. Contact your car insurance provider and provide them with details about the purchase, including the Vehicle Identification Number (VIN) and lender.
All you need to do then is show proof of insurance to the dealer and they’ll hand you the keys. Just be sure to add your vehicle to your auto policy as soon as possible to avoid the consequences of driving without insurance.
How Much Insurance Do I Need for My Vehicle?
Most dealers will not allow you to drive off the lot in your new car until you show proof of insurance that meets your state’s minimum coverage requirements. Liability insurance is required in most states with the limits differing from one location to another. For example, Alabama requires its drivers to carry $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $25,000 in property damage (25/50/25).[3] California drivers are required to have 15/30/5.[4]
Meanwhile, New Hampshire doesn’t require insurance as long as individuals can prove financial responsibility. Those living in Virginia are required to pay an uninsured motorist fee in order to forgo auto coverage. Check with your state’s insurance department to find out what your insurance obligations are.
How To Get the Best Deal on Insurance
Many drivers can get a better deal on their car insurance rates by leveraging discounts, increasing their deductible and shopping around.
Take Advantage of Discounts
Car insurance discounts are one of the easiest ways to lower your insurance rates. Here are some common ones that your carrier may offer:
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Discount |
Description |
|---|---|
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Anti-theft discount |
Your vehicle is equipped with anti-theft devices |
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Automatic payment discount |
Your premiums are paid on an autopay schedule |
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Purchase multiple types of policies from the same insurance company |
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Complete an eligible defensive driving course |
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Distant student discount |
An insured student is attending college at least 100 miles away (mileage may vary)[5][6] |
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Maintain a driving record free of violations and accidents for a certain number of years |
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Show proof of good grades in college or high school |
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Low-mileage discount |
Drive below a certain number of miles each year |
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Loyalty discount |
Stay insured with the same company for a certain time |
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Military/Veteran discount |
Be active-duty military or a veteran |
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Insure at least two vehicles on the same policy |
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New vehicle discount |
Your vehicle is new |
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Organizational discount |
Belong to a certain club, employer, university or other organization |
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Paperless discount |
Opt in for paperless mail |
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Pay-in-full discount |
Pay your premium in full instead of multiple installments |
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Profession-based discount |
Be of a certain profession |
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Agree to have your driving data tracked and earn a discount based on how safely you drive |
Raise Your Deductible
The premium you pay for coverage is based in part on your deductible. If you’re a safe driver with a clean driving record, you can probably get away with opting for a higher deductible so you can enjoy lower monthly premiums. Just keep in mind that your out-of-pocket costs will be higher if you do get into an accident.
Shop Around
One of the simplest ways to save on auto coverage is to shop around using SmartFinancial. All you need to do is answer a quick questionnaire about your budget and coverage needs, and you’ll get matched with an auto policy. Rates will differ from one insurance company to another so see which one gives you the best value for the coverage you need.
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Derek has written 100+ articles on property & casualty, health and life insurance topics as an insurance expert for SmartFinancial. Within his decade-long career writing about finances, entertainment, religion and philosophy, Derek spent three years writing financial articles for credit unions throughout the U.S. He prides himself on his ability to translate complex topics into actionable tips for everyday people.
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