Martin Lewis shares the precise time to resume your auto or home insurance for the very best offers – Each day File

Martin Lewis revealed how "the biggest shake in decades" in calculating the cost of auto, motorcycle, van and home insurance will affect everyone in the UK when new rules come into effect on January 1, 2022.

The finance guru explained to viewers on the latest episode of the award-winning Martin Lewis Money Show Live that the pricing algorithm for insurance is changing, which means that new and existing customers will have to pay the same price for policies starting next year.

And the consumer champ warned that the change could come sooner than expected as insurance companies adapt to this new pricing formula, which could mean cheap deals for switchers could disappear "any minute".

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Contrary to his previous advice, he urged people to look for alternative auto and home insurance as soon as possible to save money before introducing the new pricing algorithm.

With the new calculation method, Martin assumes that existing and new prices will meet somewhere in the middle and consequently the savings for those switching will decrease in the future, but he believes that there will still be good offers when more competitors come onto the market .

The founder of MoneySavingExpert.com believes that the new price change could take place within the next month and that the "window of opportunity to get hold of a cheap exchange offer is now".

He said, "Changing the pricing algorithms for insurers here is not an easy task, they have to do this by January so I think they will likely do this soon – possibly even within a month, we could see the first of these price changes." .

"The time window for a cheap change offer is now."

Martin then revealed how everyone should check now to see if they can save money on a renewal policy – even if the renewal date is six months away.

He stated, "If you find that you can save a lot, start a new policy, cancel the old policy, check the cancellation policy – you normally get a prorated refund less an administrator of around 50 unless you claimed £ fee. "

But he also had unique advice for those whose car, motorcycle, van or home insurance needs to be renewed, explaining how to save hundreds of pounds by getting a quote on a specific day.

He said, “The perfect time to get new quotes, not to renew but to get new car insurance quotes, is 23 days before your renewal and for home it's 21 days.

"The reason is, if you leave it later, the insurers categorize you as a higher risk person and increase your price."

Martin then showed viewers a graph showing that people who received a quote for car insurance up to the last minute paid, on average, almost 50 percent more than if they had done it 23 days earlier.

If you renewed your home insurance at the last minute, you paid an average of 20 percent more.

The Martin Lewis Money Show Live is broadcast every Thursday at 8:30 p.m. on STV.

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