Being aware of your car insurance renewal date could lead to savings of nearly £200, expert says.
At the beginning of 2023, renewed premiums cost drivers an average of £436. Additionally, the average price of a new driver’s policy increased by £14, reaching £545.
Given the current cost-of-living crisis, having knowledge of the renewal date can help Britons save money.
Ryan Fulthorpe from GoCompare has shared a valuable tip to obtain the best insurance value. He suggests purchasing a premium up to 29 days before the policy start date and “locking in” the quoted price on that day.
Fulthorpe mentioned that GoCompare’s data indicates that the closer one gets to the renewal date, the higher the potential cost.
On average, customers saved over 44% by buying car insurance 27 days prior to renewal, compared to those who renewed on the actual day.
By utilising this approach, motorists could save more than £191, considering the average cost of a renewed premium at £436 at the beginning of the year.
It is also recommended that drivers utilise comparison websites such as GoCompare, Comparethemarket, and Money Supermarket to ensure they secure the best deal.
Julie Daniels, a motor insurance expert at Compare the Market, advises that those who drive fewer than 4,000 miles per year could save an average of £168 by switching to pay-by-mile policies instead of annual comprehensive car insurance.
Another cost-cutting measure is the installation of a black box, especially for young drivers.
Black boxes monitor driving behavior, and policy prices can decrease by as much as 60% for motorists who have been on the road for at least a year.
However, poor driving habits can result in higher insurance premiums as a consequence.