Purchasing car insurance within 15 to 28 days of your renewal date gets you the best price, according to a study by MoneySuperMarket.
Renewing the day before it is due costs on average 17% more than renewing in the 13-day window, the study found.
Kate Devine, car insurance spokesperson at MoneySuperMarket, noted that many people “leave renewing our car insurance until the last minute. Insurers know this which is why we see renewal prices increasing the closer to your policy’s end date.”
With the average price of a fully comprehensive policy costing £490 ($679), premium holders that renew the day before their renewal date could be spending £83 more than those renewing within the window, the study added.
From 14 days prior to renewal, customers may start to see prices creep up, with prices increasing exponentially day by day seven days prior to the renewal date.
“What our research shows is that it pays to be organised,” said Devine, adding that “if you haven’t renewed your car insurance for a while, it’s likely you could make even greater savings, so make sure you shop around for a new deal – doing so is quick and could save you up to £218.”
The average price of motor insurance in the UK was at a four-year low in 2020, figures suggest.
UK drivers paid about £465 for comprehensive motor cover last year, according to ABI’s latest motor insurance premium tracker.
This is a decrease of 1% since 2019, and the lowest average price since 2016, the data shows.
What's more, the average premium paid the final quarter of the year stood at £468 – 3% less than the same period on 2019.
Meanwhile, Britain suffered its weakest January car sales in 51 years, as showroom closures due to the pandemic have brought the market to a near standstill.
The Society of Motor Manufacturers and Traders said just 90,249 new vehicles were registered across the UK last month, down 40% on last year. SMMT said the new car registrations total was the lowest in January since 1970.
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