Is Labor Day the Best Time To Find Car Deals?

Labor Day is frequently a great day to buy a car because end-of-month discounts may converge with special holiday deals to create some of the lowest new and used vehicle prices of the year. Keep in mind that drivers in nearly every state are required by law to maintain auto insurance — so you may need to shop for a Labor Day car insurance policy before buying a new vehicle.

Many dealerships offer discounts on or around Labor Day, and it’s important to shop around to find the best possible deal on a car insurance policy for any vehicle you buy on Labor Day.

Read on to learn more about holiday car-buying deals and how you can insure your new ride at the lowest price possible this Labor Day.

On This Page

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  Is Labor Day the Best Time To Buy a Car?

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  Do Dealerships Offer Discounts on Labor Day?

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  How To Insure a New Car on Labor Day

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  How Much Insurance Do I Need for a New Vehicle?

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  How To Get the Best Deal on Labor Day Car Insurance

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  Labor Day and Car Insurance at a Glance

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  Frequently Asked Questions

Is Labor Day the Best Time To Buy a Car?

Labor Day weekend is often one of the best times of the year to buy a new car. Three-day weekends are popular for car dealerships, and many dealers offer special holiday discounts. In addition, salespeople may lower their prices toward the end of each month to try to hit monthly sales quotas — which may result in even more savings during a late August weekend heading into Labor Day, depending on what date the holiday falls on.^[1]

Do Dealerships Offer Discounts on Labor Day?

Several dealerships across the country offer discounts on and leading up to Labor Day each year. To get an idea of what Labor Day savings can look like, see the table below, which goes over examples of promotional offers from a few car manufacturers that are valid until the day after Labor Day in 2026:^[2]

How To Insure a New Car on Labor Day

Car insurance is required by law in every state except for New Hampshire, so you’ll generally need to make sure you’re insured before purchasing a new car on Labor Day.^[3] If you don’t already have coverage, take the following steps to obtain an auto insurance policy:^[4]

1. Prepare all the information you’ll need to request an auto insurance quote, such as your name, driving record, marital status, vehicle identification number and expected annual mileage.
2. Look into what car insurance coverage types are required in your state — and which optional coverages you may need to address the risks you commonly face in your daily commute.
3. Compare quotes from multiple insurance carriers, and ask whether you qualify for any car insurance discounts.
4. Select the policy that makes the most sense for your auto insurance coverage needs and budget, and apply for it online.
5. Pay your first premium to activate your policy.

Meanwhile, if you already have car insurance, any new vehicle you purchase may automatically be covered by your policy for up to 30 days, depending on your insurance company. To formally add a new car to your existing coverage, you may need to contact your insurance provider via phone, online portal or mobile app and share the car’s vehicle identification number.^[5]

How Much Insurance Do I Need for a New Vehicle?

Car insurance requirements vary by state, but at a minimum, you’ll need to carry liability insurance. The most common minimum liability coverage limits are $25,000 in bodily injury liability insurance per person, $50,000 in bodily injury liability insurance per accident and $25,000 in property damage liability insurance per accident — commonly formatted as 25/50/25.^[6]

That said, mandatory liability limits for standard car insurance policies may range from as low as 15/30/5 to as high as 50/100/50, depending on your state.^[6]

In several states, you’re also required to purchase certain additional coverage types. Examples of auto insurance coverages that may be required by law in your state include uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments coverage (MedPay) and property protection insurance (PPI).^[6]

How To Get the Best Deal on Labor Day Car Insurance

In the upcoming sections, you’ll learn about some of the steps you can take to find the cheapest rates possible as you shop for car insurance on Labor Day.

Take Advantage of Discounts

Auto insurance companies typically offer many discounts that may help lower your monthly car insurance premiums. Here are examples of just a few common car insurance discounts:

• Safe driver: If you consistently practice safe driving habits and go several years without getting into any accidents or filing any claims, your car insurance premiums may go down over time.
• Good student: Teenagers and young adults who maintain a B average or better in high school or college may qualify for a good student discount from several insurance carriers.
• Anti-theft: Installing an anti-theft device — like a car alarm, kill switch or tracking system — lowers the odds that you’ll need to file an insurance claim related to theft, and it often leads to discounted auto insurance rates as a result.
• Bundling: You may be able to save money by bundling policies, which means buying multiple insurance products — such as both homeowners and auto insurance — from the same insurance company.
• Multicar: It’s often cheaper to insure multiple vehicles under the same car insurance policy than to buy separate policies for each car and driver.

Raise the Policy’s Deductible

In general, the higher your car insurance deductible is, the lower your premiums are, since your insurer won’t have to pay as much whenever you file a claim. For this reason, raising your deductible may be an effective way to decrease your insurance costs if you have a clean driving record and don’t think you’ll file claims often. Of course, you must make sure you have enough money in savings to cover your deductible in case of a car accident or theft.

Shop Around

Since insurance companies have distinct underwriting methods, you need to compare car insurance quotes from at least three to five different insurers to see which one can offer the lowest rate on the coverage you need. Unfortunately, reaching out to insurance carriers one by one to give them information about your vehicle and car insurance coverage needs can be a hassle.

That’s why you should let SmartFinancial eliminate the hassle by handling the comparison shopping for you. All you have to do is fill out a brief questionnaire, and then we’ll share your information with an insurance agent who can help you find high-quality, affordable policies in your area. Click here to receive auto insurance quotes for free today!

Labor Day and Car Insurance at a Glance

• Labor Day savings: Labor Day is one of the best times of year to shop for a new car because many dealerships offer promotional prices on holidays that result in three-day weekends, including Labor Day. Many salespeople also offer end-of-month discounts, which may lead to added savings when the Friday before Labor Day falls at the very end of August.
• Savings examples: Exact discounts may vary based on the make and model of the car you want to buy and where you choose to buy it. Examples of possible savings opportunities include financing deals with a low or no annual percentage rate for several months or years, cash bonuses that directly lower the cost of your vehicle and no payment requirements for the first few months of the loan.
• Insurance considerations: Almost every state requires drivers to be insured, so you’ll need to shop for a new policy that meets your state’s minimum requirements or add your newly purchased vehicle to an existing auto insurance policy.
• Insurance requirements: Liability car insurance is required by law in every state other than New Hampshire. Other coverage types may also be mandatory in certain states, such as uninsured and underinsured motorist coverage, personal injury protection or medical payments coverage.
• Insurance savings: To find the cheapest possible insurance policy for your new car this Labor Day, consider shopping around, asking about discount opportunities and selecting a higher deductible — if you can afford it.