Motorists Urged to Act Quick to Get the Greatest Offers Forward of the Automobile Insurance Legislation Change – Mid Sussex Occasions
Motorists whose insurance is about to be renewed are urged to act before the end of the year or threaten possible price increases in January.
New figures show insurance premiums are more expensive on average in December, but new pricing laws could mean a surge in bills starting next month.
Buying and browsing your car insurance at the right time can save you up to £ 300, with Compare the Market identified as the "sweet spot" for the cheapest deals by comparison website Compare the Market 20 days prior to renewal.
It turns out that drivers who wait until the last minute before deciding on a new policy are faced with offers averaging £ 306 more than those looking for a deal 20 days in advance – 707 £ compared to £ 401.
That said, the data also shows that more than half of drivers leave by the week before renewal before they start shopping, and a third of searches occur on the last day of a policy.
This year, however, new laws to protect customers make matters even more complicated.
Figures from the past eight years show that prices are usually cheap for the first three months of the year, rise steadily over the course of the year and then rise in December when they are £ 50 more than the cheapest month.
However, the site's experts warn that coming January could come as a shock to some motorists as rules to protect loyal customers could affect those looking for a new insurer.
The average premiums are traditionally higher in December
The new regulations of the Financial Conduct Authority prohibit insurers from offering special offers exclusively for new customers. This means that existing customers receive the same price as new customers. However, instead of making special offers to existing customers, insurers are expected to simply end the discounted premiums designed to attract new customers.
Ursula Gibbs, Director of Comparethemarket.com, commented: “While auto insurance was usually cheap at the start of the year, 2022 could be different. With a big change in regulation imminent, insurance costs could rise significantly over the next year. If your policy is auto-renewing in the next few weeks, it may be better to switch sooner rather than later. "