New research into car insurance renewal prices has revealed the best time for drivers to consider switching policies.
Leaving it until the last minute is likely to result in paying more, but being prepared in advance could deliver considerable savings.
Analysis by Compare the Market has found that switching 20 days before the date of renewal could deliver an average saving of £306.
Be prepared or pay more
Buying a new policy 20 days before renewal would see a typical car insurance premium cost £401. As time runs out, closer to the date of renewal, the quoted price will continue to rise.
Indeed, switching a policy on the date of renewal could result in paying a considerable £707 instead.
Compare the Market found 32 percent of all enquiries were by drivers switching on their renewal date. More than half (58 percent) are slightly more prepared, looking to change a week before their renewal.
However, changing a week before could still cost an average of £506. This results in drivers losing out on a potential £105 saving.
Avoid waiting to switch in 2022
Those with insurance policies renewing soon are likely to pay more. December is typically the most expensive time of the year for car insurance.
An average policy taken out in December would cost £703. Taken out in March, it would cost just £639 instead.
Compare the Market warns against waiting until January 2022, though. New pricing regulations, introduced by the Financial Conduct Authority (FCA), will take effect to prevent insurers offering better discounts to new customers.
Premiums for those switching could be higher next month, as insurers may increase costs to recoup the difference.
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