Renew car cover early to avoid last minute price hikes
Drivers who leave it to the last minute to renew their car insurance policy risk being stung by last minute premium price hikes, according to analysis from MoneySupermarket.
The comparison site analysed almost 13 million quotes from motorists shopping around to renew their car insurance. It found drivers can save up to £33 - or seven per cent - if they buy their car insurance with more than two weeks to go on their policy, compared to on the actual day of renewal. The analysis showed if there are more than two weeks to go on a policy, at renewal motorists will pay £434 on average, which creeps up to £448 on average with one-two weeks to go, increasing further to £452 on average during the last week of the policy. On the actual day of renewal, the cost of cover jumps to £467 on average. Overall the research found the UK's drivers stand to save more than £500 million collectively, by running their renewal quote as early as possible.
The research also found UK motorists are most likely to leave searching for car insurance quotes until the week their policy is due to expire, with 55 per cent beginning their search with under a week to go. This includes almost two fifths (18 per cent) who are last minute buyers, choosing to leave it until the day their policy lapses to renew. Almost a third (30 per cent) are much more organised and start thinking about renewing with more than two weeks to go on their policy, and a fifth (15 per cent) begin to look for new quotes with one to two weeks left.
Peter Harrison, car insurance expert at MoneySupermarket said: "Our analysis clearly shows that when it comes to renewal time, the early bird really does catch the worm, with renewal premium prices likely to be lower. Those who do leave it to the last minute are often viewed by some insurers to be a greater risk so they will price accordingly. Planning ahead is key to making significant savings on your car insurance as insurers tend to change pricing daily. Many do allow you to lock in your quote for 30 days, leaving you free to continue shopping around.
"There are also significant savings to be made by not settling for your renewal quote and by taking the time to shop around alternative providers, running an early quote and locking in your best price allows you to look into the options available before your policy renewal date. Motorists can save £405 on average by shopping around for their insurance premiums through MoneySupermarket."