Motorists could save hundreds of pounds off their car insurance policy by renewing their agreement at this exact sweet spot, according to experts. Data from MoneySuperMarket has found that drivers who shop around between 21 and 28 days before their current policy expires could save as much as £300.
According to specialists, car insurance companies tend to view drivers who pay premiums early as more responsible. This can translate into much lower costs, with road users likely to enjoy hundreds of pounds in discounts. Alicia Hempstead, car insurance expert at MoneySuperMarket, suggested road users needed to be “proactive” to secure the best rates.
She said: “Many drivers leave renewing their insurance until the eleventh hour, but our data shows that being proactive really pays off. Your renewal notice usually lands around a month before your policy ends, and this is your window to act.
“The sweet spot for renewal is typically 20 to 27 days before your policy ends – and shopping around during this window could save you around £300. Insurers tend to view drivers who compare premiums early as more responsible, which can translate into lower costs.”
Despite the potential savings, a new study by MoneySuperMarket of 1,000 drivers has revealed that many still ignore the simple tip. Over two-fifths (41%) of those surveyed drivers leave it until the last minute to secure a new car insurance agreement.
MoneySuperMarket explains that road users should never allow their car insurance cover to automatically renew without shopping around first for possible deals.
Meanwhile, they stressed only looking at the last minute on the day an existing agreement ends will also backfire, as it is the most expensive time to renew. A total of 55% of road users aged between 25 and 34 delay shopping around for a new car insurance policy until just before their current policy ends.
Money Saving Expert Martin Lewis has previously highlighted the three-week sweet spot, admitting that 23 days out from renewal is the absolute best time to secure the lowest rates.
Martin has previously said: “It starts to drop at around 30 days, you get into the sweet spot around three to four weeks before. It bottoms out at exactly 23 days – but, you know, let’s not play that, this is averages – and then the price starts to rise and rise and rise and rise.”