Car insurance can be expensive, but there are some things you can do to help lower the cost
Renewing your car insurance on an exact day could save you some serious money, experts have said. According to the team at Money Saving Expert (MSE), sticking to this guidance could even “halve your price”.
Car insurance is just one of many costs that come with driving in the UK. Although it provides protection in instances of accidents, damage, or theft, it can often feel like an expensive burden.
MSE, the consumer website set up by Martin Lewis, shared essential tips for securing the best rates. This includes being selective about when you choose to renew..
MSE said: “September’s a busy time for car insurance renewals as it’s a new car registration month. Yet the best time to find the cheapest quotes is three to four weeks before renewal, so right now if your policy’s up next month.”
More specifically, it revealed when to renew your insurance to achieve up to 50 per cent savings. Evidently, submitting applications precisely 26 days before the renewal date represents the “sweet spot”.
“The sweet spot to get quotes which could halve your price,” MSE said. “We analysed 1.2m quotes to find the optimum time before you want your cover to start to get quotes from new firms.
“The data shows it bottoms out at 26 days before renewal, though any time between roughly 20 and 27 days should do the job. The key’s to avoid leaving it till the last two weeks, as that’s when prices really skyrocket, and possibly even double.
“This is because insurance is priced on risk, and providers’ “actuarial charts” apparently show those who renew last-minute are often a higher risk. Now this is about averages, so it won’t work for everyone, but many will be able to save £100s.”
One customer followed this advice and managed to cut £450 from their bill. Rob contacted MSE in June, saying: “Martin, I won. I recently had a renewal quote for my car insurance which was overly expensive.
“I followed your advice 26 days before (sweet spot) and used comparison websites. My insurer couldn’t match any of the quotes. Thanks to your advice, I have saved over £450 a year on my car insurance. I’m so delighted.”
Alongside following this guidance, motorists can utilise the MSE budget car insurance comparison service available here.
MSE explained: “Fill in just one questionnaire via our Compare+ Car Insurance tool. It gives you cost-cutting tips as you answer, shows your cheapest insurers from the comparison as a benchmark as well as the cheapest time to buy, and whether to add extra drivers, check other comparisons and more.”