We'll inform you the most effective time to take out or renew your car insurance – That is Cash
Drivers looking to save on their auto insurance should renew their policy about three to four weeks before it expires in order to get the best deal, research from comparison websites shows.
This sweet spot can save hundreds of your renewal costs instead of paying the potential auto-renewal penalty or leaving it at the last minute.
Changes are also underway in the insurance industry and drivers should also have access to fairer prices from January.
This is because the Financial Conduct Authority had ruled that auto and home insurers are not allowed to bill existing customers more than new customers to take action against the loyalty penalty.
Motorists could save on their auto insurance by choosing to take out or renew policies at a specific time
The changes are intended to prevent existing customers who do not want to change insurance from being ripped off.
To find out how much you can save, This is Money has combined data from several comparison websites to see exactly when the best time to renew car insurance is.
Uswitch Customers should renew their plans 30 days before their existing policy expires in order to get the best deals.
A spokesman said: "About 30 days before your existing auto insurance expires, your insurer should ask if you want to extend your coverage. This is a signal to compare offers to see if you can save."
The comparison site added that the cheapest renewal deals are found roughly three weeks before a driver policy expires.
It also warned drivers not to leave the extension until the last minute, as it could mean more expensive policies as drivers will be seen as a greater risk of leaving them late and know that motorists will be more anxious to get coverage to find.
Meanwhile, for those looking to specifically extend their policy, customers can get the best price by purchasing auto insurance within 15 to 28 days of an extension date, so Money supermarket.
It also shows that an extension on the day before the due date costs an average of 17 percent more than an extension in this thirteen-day window.
The website said premium holders who update their policy the day before their renewal date could spend £ 83 more than those who renew in windows 15-28.
Kate Devine, Auto Insurance spokesperson for MoneySuperMarket, said, “Many of us renew our auto insurance until the last minute. Insurers know this, which is why we find that renewal prices go up the closer you get to the end date of your policy.
“Our research shows that it pays to be organized. If you haven't renewed your auto insurance in a while, you can probably save even more. So check out a new offer – it's quick and you can save up to £ 218. & # 39;
Data from Compare Also shows that customers could save £ 350 by extending their policy 26 days before it expires.
In fact, it's a good idea to leave it for 15 days if you look at the graphic below showing the quote "on the day".
Go Compare data shows that it is better to get insurance 26 days before renewing because it is the cheapest
Insurers say the winter months are the cheapest months to get insurance
The winter months are also the best time to get auto insurance, according to data from several websites.
Uswitch announced that its customers are best off buying auto insurance between August and February, as this is when providers are most competing for custom drivers.
A car insurance expert at Uswitch said, “Car insurance purchases peak in March and September as many new cars are bought when license plates change.
“But in August and February we see most of the changes in auto insurance as drivers prepare to make new purchases or start renewing their existing policies.
"As a result, competition between insurers is widespread, meaning drivers have access to better deals at these times."
In the meantime, Compare the market found that drivers saved the most in February and March, with average prices of £ 638 and £ 637 respectively.
Compare the market which says insurance was the most expensive in December at £ 712
It also found that while the winter months are the cheapest time to buy or renew, the cost is highest in December, averaging £ 712.
A spokesperson said: "Our figures show that the cost of auto insurance can vary significantly at different times of the year and consumers should take this into account when renewing their policy.
“Drivers could save about £ 75 if they took out car insurance in February or March instead of December.
“One possible reason for this is that the cost of a policy reflects current market demand as well as a number of factors based on an individual's risk profile.
“In December, some people think less about auto insurance, so insurers can charge higher prices because of this lower demand.
"Motor insurance costs then tend to drop significantly in January as insurers compete to attract customers as they look more closely at their bills after the Christmas break."
Can you save on car insurance?
Motorists can save hundreds on their auto insurance every year by simply comparing prices online.
With comparison sites like This is Money's partner, Compare the Market, you can see if switching providers can save you money.
Motorists could also use offers to negotiate with their current insurer.
To see if you could save today, visit This is Money's partner, Compare the Market.
GoCompare confirmed that the winter months are the time to buy as data showed that premiums appeared to be consistently lower between November and February.
He also stressed that anyone considering changing their policy in the medium term to find a cheaper premium should consider several things.
First, those who decide to switch insurers in the medium term are likely to have to pay cancellation fees, with costs varying between insurers.
Second, when a driver pays in installments, they must also pay any applicable interest on the overall policy.
Finally, any medium term termination can mean the loss of your no claims bonus, which is usually based on the entire year a policy is held. As a result, you could lose your no-claims bonus for the current year.
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