The precise date for auto insurance renewal has been introduced and you could possibly save £ 306 a 12 months … – The Solar
DRIVERS can save hundreds of dollars on auto insurance renewals if they do it at the right time – we'll reveal how.
Motorists can save an average of £ 306 on car insurance by switching 20 days before their renewal date, research has found.
The 20 day rule can save you hundreds of pounds on your auto insurance every yearPhoto credit: Getty
According to Comparethemarket.com, if you sort your car insurance 20 days before your renewal date, you'll pay an average of £ 306 less than those who wait until the day before their current policy expires.
Getting a quote on new car insurance on the renewal date itself costs an average of £ 707, compared to just £ 401 for drivers who organize in advance.
Average prices increase as the renewal date approaches.
The average cost is £ 431 if you do this two weeks before your renewal date, £ 506 one week before and £ 617 the day before your current policy expires.
December is traditionally the most expensive month for auto insurance as the British then plan for the coming year, which means their policies will be renewed shortly before the deadline.
But new rules mean auto insurance prices will get more expensive in January – so maybe you should renew now.
This is because new rules are coming into effect aimed at leveling the playing field between new and existing customers.
The Financial Conduct Authority will discourage insurance companies from offering better deals to new customers.
The so-called "loyalty penalty" has long been criticized as it punishes customers who stay with the same insurer and whose premiums often rise every year, even if they have not made a claim.
Meanwhile, new customers are offered lower prices as providers try to attract them.
From January 1, 2022, home and motor vehicle insurances will no longer be able to offer new and existing customers different offers.
And while this is great news for loyal customers, it could mark the end of the bargain deals for those who shop every year.
How to save money on your car insurance
Drivers needn't despair, you can still get a decent deal on their insurance – but shopping early is key.
Insurers tend to offer better rates to those who close their policies before the renewal date because they are seen as more responsible.
Ursula Gibbs, Director of Comparethemarket.com said, "A lot of people leave it until the last minute, but you can save a significant amount of money by switching about three weeks before your policy auto-renews."
Gibbs says rule changes mean it's no longer possible to search for an introductory business – so switching BEFORE rule change can save hundreds.
She added, “While auto insurance was typically cheap at the start of the year, 2022 could be different.
"If your policy is automatically renewed in the next few weeks, switch sooner rather than later."
Last month, Martin Lewis announced that you can save up to £ 500 on your car insurance if you renew at the right time.
Sun Savers also offered top tips for saving money on your insurance policy, including paying annually instead of monthly.
And we've listed some key winter money tips to ensure your vehicle drives safely without paying through the nose.
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