KNOWING the exact date to renew your car insurance could save you almost £200, according to an expert.
The average cost for renewed premiums was £436 at the start of 2023, according to the Association of British Insurers (ABI).
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Meanwhile, the average policy price for brand new drivers was up £14 to £545.
The Sun exclusively spoke to one student whose premium rose by £250 earlier this year, despite no change in circumstances or any claims.
It comes as insurers have seen energy inflation making repairs more expensive, as well as the cost of paint and materials.
However, there are ways you can cut the cost of your premium if you’re worried about forking out more money, including knowing when to renew.
Ryan Fulthorpe, car insurance expert at Go Compare, said you can buy a premium up to 29 days before the policy start date and “lock in” the price you’re quoted that day.
The closer you get to the renewal date of a policy, the more money you’re likely to spend.
He said: “Go Compare data shows that the closer to the renewal date you get, the more you could end up paying.
“Our customers saved over 44% on average by buying their car insurance 27 days before their renewal date, compared with those renewing on the day.”
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So if your policy is due to end on August 1, for instance, then you should look at renewing it on July 5 before the cost starts rising.
With the average cost of a renewed premium standing at £436 at the start of the year, employing this trick could save you over £191.
Remember though to compare costs to find the cheapest deal too.
Just because it’s cheaper than renewing closer to the end with your current provider, doesn’t mean you can’t find a better price elsewhere.
You can use comparison sites like GoCompare, Comparethemarket, or Money Supermarket.
More ways to slash your car insurance
Nailing down the right day to renew you car insurance is just one way to save money.
Julie Daniels, motor insurance expert at Compare the Market, said the type of policy you pick has an impact on overall costs too.
For example, if you’re someone who doesn’t drive that much, a pay-per-mile policy could be a cheaper option.
Payments are based on the miles you actually drive, rather than a flat monthly or yearly fee.
Julie said: “Almost one in five motorists who drive less than 4,000 miles per year could save up to £168 on average by swapping to a pay-by-mile policy instead of an annual comprehensive car insurance policy.”
Meanwhile, it can be worth putting your excess up – the amount you have to pay yourself if you make a claim – which can help reduce your premium.
Plus, it’s worth getting a black box fitted in your vehicle.
They are usually given to younger drivers who are seen as more risky, but older drivers can get them installed as well.
They track your driving, including breaking and speeds, which insurers then use to work out your premium rate.
According to Compare the Market, if you’ve been driving for at least a year, the trick can see your policy fall by as much as 60%.
Bear in mind though, the disadvantage to the tech is that if you are a bad driver, your premium will go up.
Plus, some car insurance policies restrict how many miles you can drive if you’ve got one installed.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
