Data from the UK’s leading price comparison site revealed that there is a sweet spot of eight days before the policy is due to expire. A quarter (25%) of drivers who locked in their quoted price at this time saw an average saving of £132 (28%) compared to if they had taken the price quoted on the day their new policy starts.
Leaving your insurance to the last minute is the worst thing you can do to get the best price, with premiums rising in price steeply three days before the policy expiry date. The most expensive policies were found on the day of the current policy’s expiry, so it’s prudent not to leave it until then if you want the best price.
Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “If there’s one thing to remember when it comes to saving money on your car insurance, it’s making sure you shop around before your policy automatically renews – you could save hundreds of pounds.
“What our data shows is that the time you run your quotation can also have an important bearing on the level of savings you can make. Insurers know that many of us leave buying insurance to the last minute, which is why we see prices increasing closer to the date a policy is due to expire. To avoid higher costs, you should shop around for your new policy at least a week before the old one runs out and lock in the price you are offered at that point – those that do can make substantial savings.”
In our experience loyalty to an insurer is not well rewarded either in most cases. We’ve found that switching insurer each year is another way to avoid escalating costs for insurance, as it seems a lot of leading insurers creep their prices up on year two probably to offset their attractive rate in year one. So it also pays to look at other insurance providers when your policy is due for renewal.
To learn more about this research and the best time to renew car insurance, please visit MoneySuperMarket.