Insurance premiums have risen over the last couple of years year, with both new and existing drivers seeing the cost of their policy rise.
However, car insurance experts say the easiest way to cut the cost of your premium is to pick the right day to renew.
New research from price comparison site Go.Compare has revealed that purchasing your policy 26 days before your renewal date could save you more than £150.
The comparison site has released its latest analysis of the best time to buy car insurance and found that, according to car insurance purchases made through Go.Compare in 2024, purchasing a policy 26 days before renewal costs an average of £390, £164 less than buying it on the renewal day.
The data revealed that buying car insurance on the last day before your policy is due to renew can cost drivers 42% more when it jumps to £554.
While car insurance can be purchased up to 29 days in advance, the research highlights that buying between 21 and 28 days before renewal offers the best savings.
Tom Banks, car insurance spokesperson for Go.Compare, explained: “It’s no secret that insurers consider multiple factors when calculating your premium, but many drivers don’t realise that the day you buy your policy can also impact the price.
“Drivers who leave it until the last minute are often perceived as higher risk, which can result in higher premiums.
“On the other hand, purchasing in advance signals that you’re organised and responsible—traits that insurers reward with lower prices.
“Your annual mileage, where you park your car and the car you own could all affect the price of your premium – and while these aren’t things you can easily change, there are still a few practical ways you can help lower the cost of your car insurance:
- Pay annually: Paying for your insurance premium monthly is seen as a loan by the insurer and once interest is added you will end up paying more than if you opted to pay annually.
- Shop around: Simply using a comparison website like Go.Compare makes getting quotes from different insurers easy. You only have to put all of your details in once and you can see exactly what each policy includes, all in one place.
- Consider additional security: insurer-approved wheel locks, alarms and other security measures could bring down the price of your premium.“
