New research shows why you shouldn’t leave renewing your car insurance until the last minute.
According to recent data released from MoneySuperMarket, the best time to save money on your car insurance is eight days before your policy is due to end, saving drivers around £132 on average compared to if they had taken the price quoted on the day of renewal.
Despite the savings that can be made, a lot of drivers still leave their car insurance until the last minute meaning they face paying the highest premiums. In fact, it could end up costing them up to 28 per cent more if they were to leave it until the very last minute.
Whilst the data shows that the optimum time to lock in an insurance quote is eight days before, drivers can still benefit from lower rates up until three days before renewal where the prices steeply rise. The experts also advise that you’re not likely to see any benefit prior to the eight days.
It’s estimated that auto renewal costs British motorists around £565m a year due to insurers increasing premiums up to an average of £40 a year.
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.”
However, if you’re happy with your current insurer and you want to stick with them, then the data shows that being prepared and locking in a quote with them early could save you money. To learn more about this research and the best time to renew car insurance, visit MoneySuperMarket.