New figures released today reveal that drivers who renew their car insurance early, specifically eight days before it expires, save an average of £132 on their new policy.
MoneySupermarket calls this the ‘optimum’ time to save on car insurance. A quarter of drivers who accepted their quote eight days in advance enjoyed an average saving of 28 percent compared with the cost when taken out on renewal day. That’s the £132 figure.
This means that instead of around £490, the savviest drivers pay around £360 on average.
High renewal prices are exacerbated by leaving it to the last minute. However, the research shows that drivers can make savings by shopping around in advance of their renewal date.
It’s common knowledge that if you switch providers, you’ll save money. But you can use quotes from rival insurers to haggle with your existing provider.
“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,” said Rachel Wait, consumer affairs spokesperson at MoneySupermarket.
“You could save hundreds of pounds. 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.”