Motorists are often shocked to receive their renewal quote from their current car insurance provider. It is assumed that if you stay loyal to your current provider, you might expect to receive a discount on your upcoming renewal, but this is often not the case.
Using data provided by leading price comparison website, MoneySuperMarket, we reveal the optimum time to renew your car insurance is eight days before your policy is due to expire.
The data found that a quarter (25%) of drivers who locked in their new renewal quote at this time saved an average of £132 (28%) compared to if they had taken the quote offered on the day of their policy renewal.
The graph below shows the sharp rise in prices in the week running up to your policy end date.
MoneySuperMarket advise that whilst you can expect to save money in the eight days leading up to your renewal, you will not see any benefit prior to the eight days before your policy is finished. If you miss the window by a few days, you should still be able to secure a better deal before the sharpest rises occur just three days before renewal.
Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, said: “If there’s one thing to remember when it comes to saving money on your car insurance, it’s making sure you shop around before your policy automatically renews - you could save hundreds of pounds.
“What our data shows is that the time you run your quotation can also have an important bearing on the level of savings you can make. Insurers know that many of us leave buying insurance to the last minute, which is why we see prices increasing closer to the date a policy is due to expire.
"To avoid higher costs, you should shop around for your new policy at least a week before the old one runs out and lock in the price you are offered at that point - those that do can make substantial savings.”