Renewing your auto insurance early can save you hundreds of pounds, according to new research.
The insurance comparison website Compare the Market analyzed the renewal data and found that drivers saved an average of £ 306 if they renewed 20 days before their current contract expires, compared to renewing on the day their policy ends.
The data shows that the longer you wait to renew your policy, the higher the price becomes. The average renewal on the last day of the policy is £ 707 while the average price 20 days earlier is £ 401.
Average price two weeks before renewal is £ 431, £ 506 a week before and £ 617 the day before.
Even so, Compare the Market states that most offer comparisons take place the day before a policy expires, which makes up almost a third of the offers.
Ursula Gibbs, director of Compare the Market, said, “Insurance pricing can be complex and insurers use a variety of factors to determine the cost of a policy.
“However, our numbers clearly show that prices change significantly depending on when you take out or renew a policy. Many people leave it on until the last minute, but you can save a considerable amount of money by switching about three weeks before your policy auto-renews.
“Shopping is still one of the best ways to cut insurance costs and these numbers prove that these savings can be increased by more than £ 300 if a policy change is well planned.”
Another way to cut insurance costs is to get a quote earlier in the year, as insurers are more likely to offer discounts. Compare the market says prices tend to be lower in the first three months of the year and then rise steadily to a peak in December.
Gibbs warns, however, that this may not be the case this year: “While auto insurance was typically cheap at the start of the year, 2022 could be different.
“With a major change in regulation coming soon, insurance costs could rise significantly over the next year. If your policy is auto-renewing in the next few weeks, it may be better to switch sooner rather than later. “