Drivers could save a whopping £542 on their annual car insurance bills by following a simple 28-day renewal hack, according to motoring experts. Petrol, diesel and electric car owners who shopped around 28 days before their car insurance renewal paid hundreds of pounds less than those who updated their policy at the very last minute.
According to Confused.com, drivers were quoted just £511 per year around 28 days before their current policy expired. In comparison, road users who picked up a quote on the day of their renewal paid £1,052, over £500 more. Those shopping 3-4 weeks before their renewal secured the best rates, with the majority of last-minute quotes above £900.
Matt Crole-Rees, motoring expert at Confused.com stressed that early renewal was one of the most important ways road users could save.
He said: “The biggest saving comes from shopping around early – saving hundreds of pounds compared to leaving it until the last minute. But things like enhancing your car’s security or checking your mileage is accurate can also save you money when it comes to your renewal.”
Prices are generally much lower in the weeks before renewal because insurance firms view early planners as lower-risk road users. Drivers who think ahead and secure agreements early are considered more responsible and are therefore less likely to make claims under their policy.
Also, market competition plays a major factor, with insurers often increasing prices nearer renewal simply assuming the motorist is less likely to switch.
Speaking on ITV’s Martin Lewis Money Show, the finance guru said: “When you get your quotes – the number of days before you get a new policy, which will normally be your new renewal date – can massively affect the price of the quotes that you’re getting. This is based on millions of quotes.
« So, the sweet spot is roughly 26 days before the new policy, but a couple of days either side of that doesn’t really matter.”
