Martin Lewis has issued a warning to anyone with car insurance who is looking to renew their policy in the near future, as he says that prices have dropped but people could still be paying too much
Consumer champion Martin Lewis has dished out what he labels a “perverse warning” regarding car insurance costs. Appearing on The Martin Lewis Money Show Live on ITV1 and ITVX this past Thursday, February 13, the esteemed founder of Money Saving Expert enlightened his audience with the news that they might be fork out more than necessary upon renewing their car insurance due to shifts in the industry norms.
He explained that whilst overall prices seem to have witnessed a nosedive—which should ostensibly be a positive development—this has led many to blindly accept renewal quotes at the same rate as before, without realising that, in the context of falling prices, it’s actually not such a great deal. Martin laid out the figures, saying: “Car insurance prices have dropped.”
Elaborating further, he highlighted: “So they’re down 16% year on year. But if you still look where they were in 2021, about £500 on average, they’re still over £800 now.”
He underscored the drastic jump: “So they’re 60-70% up on where they were. So why am I warning you that prices are down?”
Puzzled about the need for his cautionary words?, reports the Express.
He clarified, stating: “It’s very simple. What I’m hearing a lot these days is that when people do their renewal, they’re so used to prices going up, when they get a renewal that’s the same price they go ‘yaaay, my renewal hasn’t gone up, I’m sorted’. No. If your renewal is the same, the market has dropped 16%, you’re paying too much.”
Persisting with his advisory tone, he wrapped up his guidance by pointing out: “Even if it’s a little bit cheaper, you’re paying too much. So my warning is against complacency.”
The money-saving maestro has dished out some golden advice for those grappling with car insurance renewals, stressing the importance of not just accepting the auto-renewal quote. He’s a firm believer in shopping around and using comparison sites to your advantage, as they host a variety of insurers offering different deals—even from the same provider.
He added: “If you’re getting a renewal and it’s not giving you a good saving on what you were paying, well I’d always say don’t auto-renew, don’t settle, combine comparison sites because they serve different insurers and they have different deals even from the same insurers. It’s worth doing, and the perfect time to get your quotes is 26 days before the renewal.”
His top tip? The best time to hunt for quotes is precisely 26 days before your current policy expires.
Martin was adamant about this 26-day rule during his chat, insisting that you should get your renewal quote exactly 26 days before your car insurance runs out. He explained: “Literally, insurers price it cheaper because the people who price it at that point are likely to be a lower risk than the people who leave it to the last minute.”
He further clarified, “Between 20 and 30 days is fine, 26 days is the perfect sweet spot and we’ve done 5 million quotes to work that out. Get that in your diary now because sometimes they won’t give you a renewal notice until two weeks before renewal, but you want to do it 26 days before renewal, and don’t be complacent if it comes in and it’s the same price. You get why it’s a perverse warning? Good stuff.”