Motorists can save and average £132, or 28% by renewing their car insurance eight days before the day it is due to expires, rather than on the day it expires, MoneySuperMarket has calculated.
The price comparison website’s data shows that the price of insurance starts to rise three days before a policy’s expiry, and is most expensive on the due date. On the other hand, there is no financial advantage to be gained by renewing more than eight days in advance.
Policy holders typically receive their renewal notification a month before it is due. MoneySuperMarket recommends putting the renewal documents in a visible place, to act as a reminder to search for a quote.
It also says motorists should never automatically accept a renewal quotation offered by their insurance provider. In fact, with insurers adding an average of £40 a year to existing policies, MoneySuperMarket estimates that insurance auto-renewal costs motorists a total of £565 million a year.
Quoted on the Motor Research website, MoneySuperMarket’s consumer affairs spokesperson, Rachel Wait, 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 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, 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 who do can make substantial savings.”
5th of March 2020