Martin Lewis shares how you should use a VERY easy trick to avoid wasting £ 500 in your car insurance … – The Solar
MARTIN Lewis showed how organized auto insurance can save you hundreds of pounds.
On its weekly ITV show MoneySavingExpert, the finance guru urged drivers to use what is known as the 21-day rule to save up to £ 500.
Martin Lewis has urged drivers to get their insurance renewals early to save hundredsPhoto credit: ITV
Martin said, “The 21 day rule is, if you line up to renew, this is the perfect place to get your new offers as insurers consider you a low risk.
"But if you leave it until the last moment, they'll think you're at greater risk and the price could go up 50% or more."
One viewer said she saved £ 500 by extending her insurance early.
Another fan tweeted that she saved £ 220 on her auto insurance.
GoCompare says you can take out your next auto insurance up to 29 days before the start date and keep the price that is offered to you that day.
This is important because if you just shop but don't buy, you may find that the price has changed if you come back at a later date.
Ryan Fulthorpe, auto insurance expert at GoCompare, said, “Many may not realize that insurers can change their prices anytime and that the price they are offering in a week could well change if they return to buy the exact same policy one week later."
According to GoCompare, customers who take out their insurance up to 26 days before the start date can save up to 40% compared to buying on the day itself.
Fulthorpe added, "A good rule of thumb is to write a reminder in your journal a month before your auto insurance expires and then start shopping so if you want to save money on your renewal."
Getting your car insurance upfront can save you hundredsImage credit: GoCompare
Martin Lewis recently urged people to look for auto and home insurance, even if they weren't supposed to be renewed as well.
January new insurance regulations come into force, which could put many people worse off.
New regulations will mean that insurers will have to offer new and existing customers the same price for their policies.
Historically, customers who stayed with the same insurer year after year had to accept sharp price increases and be punished for their loyalty.
In the meantime, new customers would take advantage of cheaper offers as insurers tried to induce them to switch.
Now might be a good time to start looking for insurance anyway, as auto premiums have fallen to a six-year low.
The costs have fallen because there were fewer accidents in the past year due to the Covid lockdown.
A decrease in the number of whiplash injuries has also helped bring prices down.
While the new rules are aimed at leveling the playing field, Martin warns that, in reality, it likely means that prices for new customers will rise across the board.
He said, “I suspect companies aren't just cutting renewals to match newbie's prices. They'll drop them a bit and increase new customer rates – meet in the middle.
"With the new regime officially kicking off in January, insurers will likely start changing their pricing algorithms sooner, so the clock is ticking and the cheapest prices may disappear within weeks or months."
He said insurance customers should start shopping now and maybe even better off canceling their existing policy and getting a new contract before prices go up.
With this in mind, be careful to see if there are any exit penalties that could negate the price saving.
Other tips for getting the best auto insurance quote include optimizing your job title.
You should also check out comparison sites like GoCompare, Confused.com, and Comparethemarket.
We've rounded up nine of the best ways to reduce car insurance costs.
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