Research suggests buying three weeks before your renewal date could save you money
Buying car insurance is expensive, so any way in which motorists can save money is much appreciated.
According to new research conducted by MoneySavingExpert, there is a way of saving money when it comes to insuring your car if you purchase at the right time.
Their investigation suggests that the best day to purchase your car insurance is three weeks before your renewal date.
A typical policy costs £1,156 if you buy on the renewal date but if you contact them 21 days before it costs just £589 in comparison – a £567 saving for customers!
And whilst waiting to the very last minute could cost you more, being too eager could mean you’ll have to pay a higher price.
Taking a policy out 30 days before the renewal date could end up costing a driver £531 more than doing so three weeks before, costing £1,120 on average!
The report claims that insurers suggest the fluctuations in premium costs between one and 30 days up until the renewal date is down to risk.
According to MoneySavingExpert, all of the following were in agreement as to why the prices differ; Admiral, Aviva, CompareTheMarket, Confused.com, Direct Line, LV, MoneySupermarket and MoreThan.
It’s thought that a driver who waits for a good deal and leaves it until the last minute could possibly be a higher risk, plus some even see a link between those who sort out their premiums at the last minute and the higher number of claims.
Choosing to buy insurance 3 weeks before suggests that a driver is careful and organised so should be rewarded with a cheaper policy, whereas choosing to renew 30 days before could see a driver penalised due to their being less premiums around at the time.
Personal information such as your age, marital status and job also play their part in how much of a saving you may be offered.
“Car insurance pricing is based on a mix of ‘actuarial risk’ and which section of the market is being targeted,” said MoneySavingExpert.com founder Martin Lewis, adding: “To find the risk they look for patterns and we’ve now uncovered that one of those is how early you get a quote before renewal.”
To come to these conclusions, more than 18 million premiums between January and May this year were looked at from three comparison websites – CompareTheMarket, Confused.com and MoneySavingExpert.
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