Money Saving Expert has shared what you should do to renew your car insurance and make significant savings
Money specialists have disclosed the precise way to renew your motor insurance to make substantial savings. On average, this approach could slash costs by a “massive” £1,371.
Motor insurance remains a legal obligation for driving on UK roads. At minimum, you require third party cover, ensuring protection should you cause an accident resulting in damage or injury to another person, vehicle, animal or property.
While it is a necessary outgoing that can assist with expenses when things go awry, it may feel like a considerable burden on your finances. Fortunately, there are measures you can implement to secure the lowest possible premium.
According to specialists at Money Saving Expert (MSE), established by Martin Lewis, there is an optimal moment to seek motor insurance – whether initially or for renewal purposes. They indicated this timing could reduce costs by more than half.
The MSE website advises obtaining quotations several weeks prior to when coverage is actually required. It stated: “The best time to get car insurance quotes is 20 to 27 days before you need the policy to start.
“Your renewal notice from your insurer will show the new price for next year (and the price you paid last year). It’s typically sent around 28 days before your current policy ends. If you do nothing, it’ll usually automatically renew at that new price, so always have your renewal date in your diary to take action.”
More precisely, you should request a quotation exactly 26 days before you require it. MSE explained: “The cheapest time to get quotes is 26 days ahead of your renewal date – making it the best time to get a quote as your cover becomes more expensive the closer you get.”
MSE revealed this approach could save the typical motorist £1,371 on their yearly premium. “Our analysis of over one million quotes from January to April 2024 from MoneySupermarket showed a policy costs an average of £2,277 a year on renewal day,” MSE explained.
“But 26 days earlier the average is just £906 a year, a MASSIVE £1,371 less.” Nevertheless, it cautioned: “In general, the closer to your renewal date you get quotes, the higher risk you’re deemed to be (we’ve heard that it can show insurers you’re a bit disorganised).
“But getting quotes too early, for example, 28 plus days out, can also push the average price up – likely as fewer insurers will provide quotes that early.” One MSE reader, Hayley, shared: “Renewed three weeks early after your tip.
“It’s gone from a renewal price of £108 a month to £51 a month [saving £684 a year]. Checked the comparisons later and it went back to £100.”
Another reader, Cara, reported: “Just did mine (24 days early) – saved over £690 over my renewal price.” Motorists can also cut costs by utilising MSE’s online car insurance tool, here.
