MARTIN Lewis has issued an urgent warning to motorists facing soaring insurance costs.
The money saving expert said premiums have spiked and drivers should check if they can lock in a cheaper rate now.
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It comes as insurers have been hit hard by rising parts and labour costs which they have started passing on to consumers.
Martin explained in his latest newsletter: “Big insurers Admiral and Aviva have hiked average premiums by 20% or more.
“So EVERYONE (even if not at renewal) should check now if they can save – as if you can, you lock in today’s premium, forestalling rises for a year.”
In February, the Association of British Insurers, the trade body for insurers, said the average price paid for motor insurance rose by 8% in the fourth quarter of 2022.
It added the average premium paid for a private motor was £470.
But if you’re worried about about sky high premiums, there are some tips you can use to save costs.
Never auto-renew
It can be easy to forget about your car insurance and let it rollover to the next year.
But you could save yourself hundreds of pounds by not auto-renewing and seeing what other deals there are on the market.
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Martin Lewis’ MoneySavingExpert.com has a useful tool you can use to compare car insurance premiums.
Or you can use a comparison website like Go Compare or Moneysupermarket.
If you do find a cheaper premium on the web, you can always take the figure to your current insurer to justify why you think you should pay less moving forwards.
You don’t have to wait until your contract ends
Some car insurance policies are taken out for 12 months at a time and you pay for them up front.
But you don’t have to wait until it ends to switch to another one.
If you do find another premium for less than what you currently have, you can just cancel it, given you haven’t had to make a claim since taking it out.
If you did pay for the premium up front you should be able to get a refund for what’s left on the contract.
Bear in mind though you may have to pay an admin fee to cancel early.
One other drawback is that you won’t earn a year’s no claim bonus, but if it means making big savings it might just be worth it.
Time your switch
Even the timing of when you switch insurance premiums has an impact on what you pay.
Research from Compare The Market has suggested insurance policies are £319 cheaper if drivers switch three weeks before their renewal date compared with switching on the day a policy ends.
Switching a policy on the day it ends costs on average £776, compared with £457 if you move three weeks before.
Pay annually
You can pay for your insurance in one lump sum up front or spread the cost monthly.
But while paying monthly might be easier to budget, you could end up paying more in total across the whole year.
So if you’ve got the money to hand, it might be worth forking out for the whole year.
