Is Labor Day the Best Time To Buy a Car?

Labor Day tends to be a great day to purchase a new car as end-of-month discounts converge with special holiday deals to create some of the lowest automobile prices of the year. Keep in mind that you’ll need to have car insurance for your new vehicle in almost every state.

Throughout the rest of this Labor Day car insurance guide, we’ll go over why you should consider shopping for a new car on September 2, 2024, and how you can insure your new ride at the best price possible.

On This Page

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  Should I Consider Buying a Car on Labor Day?

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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 Insurance

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  FAQs

Should I Consider Buying a Car on Labor Day?

Labor Day weekend is generally regarded as one of the best times to buy a new car. Not only do many dealerships offer special holiday discounts but also car salespeople tend to lower their prices toward the end of each month anyway, meaning the savings can be compounded during a late-August weekend leading into Labor Day.^[1]

Do Dealerships Offer Discounts on Labor Day?

Several auto dealers throughout the United States offer discounts on and leading up to Labor Day. For an example of what Labor Day savings can look like, see the below table, which goes over promotional offers from popular car manufacturers, valid until the day after Labor Day.^[2]

Keep in mind that there may also be special deals at your local dealer. For example, the below table goes over promotional rates offered by a Buick and GMC dealership in Los Angeles County, California.^[3]

How To Insure a New Car on Labor Day

If you already have car insurance for your current vehicle, then any new vehicles you purchase may be automatically covered by your policy for up to 30 days.^[4] Make sure you formally add a new car to your policy within the first month of owning it. You should be able to do this by providing your insurance company with the vehicle identification number (VIN) over the phone or via a website or mobile app.

How Much Insurance Do I Need for a New Vehicle?

At the bare minimum, you are required by law to carry some liability insurance in every state except for New Hampshire.^[5] 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. That said, mandatory limits for standard policies may range from as low as 15/30/5 to as high as 50/100/25 depending on your state.^[6]

You may also have to carry other coverage types depending on where you live. Examples of coverages that may be required include uninsured motorist coverage, underinsured motorist coverage, personal injury protection (PIP), medical payments coverage (Medpay) and, in Michigan only, property protection insurance.^[6][7]

How To Get the Best Deal on Insurance

Taking steps like the following can increase your odds of finding the cheapest car insurance possible for the new car you buy on Labor Day.

Take Advantage of Discounts

There are numerous discounts you may be able to take advantage of in order to lower your monthly auto insurance premium. Examples of common discounts offered by numerous car insurance companies include the following:

• Safe driving: Consistently practicing safe driving habits and going several years without getting into any accidents or filing any claims will generally cause your car insurance premiums to go down over time.
• Good student: If you are actively in school and maintain a B average or better, you may qualify for a good student discount from many different insurance carriers.
• Anti-theft measures: Installing an anti-theft device like a car alarm lowers the odds that you will need to file an auto insurance claim related to theft and often leads to discounted car insurance rates.
• Bundling: You may also be able to save money on auto insurance and other types of coverage by bundling policies, which means purchasing multiple insurance products such as home and auto insurance from the same carrier.
• Multi-car: It is often cheaper to insure multiple vehicles under a single auto insurance policy than to buy a separate insurance policy for each car and driver.

Raise Your Deductible

Higher deductibles correlate to lower premiums, so raising your deductible is a good option if you have a clean driving record and feel that you are unlikely to file claims often. Of course, you should be sure to have enough money saved up to cover your deductible in case of an accident or theft.

Shop Around

Since insurance companies have distinct underwriting methods, you should 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 auto insurance coverage needs can be a hassle.

SmartFinancial gets rid of 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 insurance agents who can help you find low-cost policies in your area. You can click here if you’d like to receive car insurance quotes for free.