The date that you buy or renew your car insurance could be important. Purchasing car insurance 3 to 4 weeks early might save you money.
It’s been widely reported that car insurance prices are going up and up. It’s tempting to put it out of mind and leave your renewal until the last minute. Surprisingly however, renewing your insurance early could save you money. And, leaving your policy renewal to the very last minute could end up costing you more.
Our expert advice is to check insurance prices on a car insurance comparison site soon after you receive your renewal quote from your current insurer. Your renewal quote is usually sent out about a month before your current policy ends.
The best time to renew your car insurance could be 3 to 4 weeks before your old policy expires.
A recent survey by the comparison website Go Compare produced an interesting result. They found that it’s usually cheapest to renew car insurance around 21 to 28 days before the old policy expires.
The clever people at MoneySuperMarket also report, “Purchasing your car insurance several weeks before it’s due can often result in lower premiums”.
Why could it be cheaper to renew car insurance three to four weeks early?
The main reason is that you are showing insurers that you are organised and careful. Some insurers report that they can statistically link groups of people who renew early with groups of people who tend to have fewer insurance claims. It’s possible that people who tend to deal with their car admin early, also tend to drive more carefully and/or keep their vehicles better maintained.
Another potential reason is that car insurers could have sales targets to hit. If you book your next insurance policy three to four weeks early, you could be giving them extra confidence that they’ll achieve their next sales target. Early-stage discounting might occur to support their business goals.
Getting car insurance quotes at the very last minute might be viewed as a risk factor by insurers, leading them to quote you a higher price. Insurers also know that you must renew quickly and do not have much time to shop around, so they might think that you will accept a higher price.
Don’t act too soon!
Your renewal quote could arrive a full month before your policy expires. This may not be the cheapest time to check prices or arrange your next car insurance policy.
Some insurers don’t offer quotes quite this early, so you might miss out on a great deal that becomes available soon afterwards. Wait a few days, until you’re in that three to four week period, and it’s likely that more insurers will be competing to win your business.
How else to save money on car insurance
- Once your insurance policy is 20 to 28 days away from expiring, use a comparison website to find competitive car insurance offers. Use CarCloud’s partner, MoneySuperMarket, right now to compare car insurance from 170+ providers. You could save up to £462.99* on your Car Insurance with CarCloud, in partnership with MoneySuperMarket.
- Think about your voluntary insurance policy excess. The excess is the amount you might have to pay towards a repair. Setting a higher voluntary excess could save you money, but don’t set it so high that you could not afford to repair your car after an accident.
- If you can afford it, consider paying for your insurance policy in full. Monthly payments for car insurance help with household budgeting, but they are usually subject to interest charges. You’ll typically pay more in total for your insurance if you pay monthly.
- Don’t overestimate your annual mileage. The more you drive, the greater the risk that you’ll have an accident, so insurers take this into account when quoting prices. If you’re unsure about your annual mileage, check your car’s MOT records here.
- Only get policy add-ons that you really need. Policy add-ons like legal expenses cover can be useful, but leaving them out could save you money. For example, should you pay extra for replacement car cover if you already have a spare car to use? Should you pay for roadside assistance if it’s already provided by a premium bank account?
You could save up to £462.99* on your car insurance. *51% of consumers could achieve this saving with CarCloud, in partnership with MoneySuperMarket. Based on online independent research by Consumer Intelligence during 01 October to 31 October 2024.
