Comparison website MoneySuperMarket made the findings after analysing over six million car insurance quotes made between January 2013 and October 2018.
It found that over the past five years, the average fully comprehensive policy taken out in February cost £475.60.
But those who insured just two months earlier, in December, paid an average of £560.80 – 18 per cent (£85) more.
Taking last year as an example, those who took out a fully comprehensive policy in December 2017 paid on average £592.88.
In comparison, those who took out a policy in February 2018 paid £507.62 – a saving of £85.26 or 14 per cent.
How to save on car insurance
Tom Flack, editor-in-chief at MoneySuperMarket, said: “People buying a car often wait until December to secure a bargain as dealers look to shift stock before the end of the year, but it comes with the downside that it’s the most expensive time of year to buy insurance."
This means insurers are competing for fewer customers in February so offer cheaper premiums to win the business.
So people thinking of buying a new vehicle may find they save more on their insurance by taking it out in February.
Those who already have cars should also consider cancelling their policy before renewal and buying in February – although do check the cancellation fees first.
You should also always do a price comparison to check if you can save by switching – staying loyal doesn't always pay.
Charity Citizens Advice submitted a so-called super complaint earlier this year warning that loyal customers are being penalised to the tune of over £4billion a year – which is about £877 a year per household.
Mr Flack said: “No matter when your car insurance is up for renewal, it pays to shop around on a price comparison site. You could end up saving as much as £276 a year just by switching insurers.
"Alongside searching to ensure you’re on the best deal for you, it pays not to wait until the last minute.
Insurers give consumers a 45 day window to renew their policy and often reserve the best prices for those who are organised and don’t leave it late, as they are perceived as safer drivers.”
It's not only the month that can influence insurance prices, we reveal the best day of the week to buy car insurance – and drivers could chop £570 off bills.
Plus, we've got some top tips on how to lower your car insurance premiums and get cashback.
It's recently been revealed that a car insurance trap is costing UK drivers £1.4BILLION a year – is your policy affected?
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