Insurance prices have rocketed in recent months due to increases in the cost to insurers to pay out claims – this means it is important to compare prices and get the best deal
A fan of Martin Lewis has revealed how they saved almost £2,000 on their car insurance by following his tip.
The average comprehensive car insurance premium now sits at £635, according to the Association of British Insurers. Insurance prices have rocketed in recent months due to increases in the cost to insurers to pay out claims. This means it is important to compare prices and get the best deal possible.
In the latest MoneySavingExpert.com newsletter, one reader called Dawn explained how she managed to knock down her costs by £1,946. She was originally quoted nearly £2,000 to renew with her existing provider – but she compared prices elsewhere and checked direct with Direct Line to get a better deal.
Not all insurance providers are on comparison websites, with Direct Line being one of the biggest examples. Dawn said: “Thanks to your Compare+ tool, I saved nearly £2,000 this year. My renewal came in at £2,947, but I followed your guidelines and got a quote for £1,027. Then I remembered Martin’s advice about checking Direct Line, and it gave me a £1,946 saving. Thanks everyone, we need more sites like yours and I think Martin should be Chancellor.”
Car insurance is a legal requirement in the UK and has to be renewed yearly. The three main types are: third party, third party fire and theft, and fully comprehensive. According to MSE, the best time to renew your car insurance is 20 to 26 days before your current policy ends.
Once you’ve found the best deal elsewhere, call up your current provider to see if you can haggle them down. If you do go with a new policy, you should see if you’d be eligible for cashback on sites such as Topcashback and Quidco.