Martin Lewis reveals ‘perfect time’ to renew car insurance to save up to £400 per year

Martin Lewis offers advice about cancelling car insurance

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Speaking on This Morning just days ago, Mr Lewis urged drivers to switch their policy at an exact time every year to save costs. He revealed 23 days was the perfect time to renew as people who apply to cover early “tend to be lower risk”.

He warned those who leave it to the last minute would pay more cover as they are seen to be a more risky individual who leaves things to the last minute.

Insurers believe this risk could translate onto the road and increase the likelihood of having a crash.

The Money Saving Expert revealed they studied 18 million quotes to scrutinise the data and come up with the 23 days figure.

He said: “If you’re coming towards your renewal date the perfect time to renew and note this in your diaries now everyone, 23 days before your quote, before your renewal.

“Now that’s when you should be comparing it’s not with your existing company.

“It can be nearly double the cost if you leave it to the day before renewal to get your renewal.

“And that’s again because insurers know that people who do it early tend to be a lower risk than those who wait until the last minute.”

A sceptical Holly Willoighhby interrupted the money guru baffled as to how he could get to a specific date.

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She said: “How have you worked that out?

“How do you know that? How do you know it’s 23 days?”

Mr Lewis added: “I, brackets my team, went through 18 million quotes from comparison sites.”

“It goes from £1,000 from 30 days before, it gets to £800 at 23 days and goes up to £1,200 the day before renewal.

“So it’s simply elbow work between me and my team to get that one.”

Mr Lewis also showed off a graph demonstrating prices would continue to rise the closer drivers get to the expiration date of their current policy.

The graph shows drivers could be paying around £800 per year for cover with around 23 days left.

However, costs can rise to around £1,000 just a week before a policy is due to expire.

The data suggests the price of an average policy can rise again to £1,200 on the expiration date.

Experts at MoneySuperMarket said the best time to renew a car insurance policy was within 15 to 29 days before your policy ends.

The average motorist will pay 17 percent less for a new quote when there’s more than a week to go on their agreement.

Confused.com said it was better to renew an agreement between 21 and 30 days before your policy expires.

They warned it is worth shopping around as best you can to secure the best deal.

The experts warn drivers who compare insurance quotes instead of auto-renewing could save around £241.

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