One in five UK drivers let their car insurance auto-renew without checking for a better deal, according to new research from comparison site Go.Compare. 

While it might feel easier to let your policy roll over, this habit could end up costing you – especially with premiums still 22% higher than they were two years ago.

Here, Which? explains why renewing at the right time matters and shares six ways to cut your premium without compromising on cover.

The cheapest time to renew your car insurance

Go.Compare found that the cheapest time to buy car insurance is 26 days before your renewal date, when the average premium is £355. Wait until the day your policy starts and the cost jumps to £493 – a 28% increase.

Despite this price gap, only 2% of drivers buy their policy on day 26. Most leave it until the final few days, when prices typically spike.

MoneySavingExpert.com also found that last-minute buyers often pay significantly more than those who buy earlier. 

Comparing quotes a few weeks before your renewal gives you more choice and a better chance of securing a lower price.

• Find out more: best car insurance companies in the UK.

Can I switch off auto-renewal?

Yes. Insurers often sign you up for auto-renewal, but you can ask them to turn it off.

If you do, make sure to set a reminder around 30 days before your policy ends. This gives you time to compare quotes and arrange new cover. 

Letting your insurance lapse could leave you without cover or force you to take out costly temporary insurance.

Whether you switch or stay, shopping around before your policy ends usually works out cheaper than letting it auto-renew.

• Find out more: how to find cheap car insurance.

6 ways to save without cutting cover

Car insurance costs remain high, and it can be hard to keep premiums under control. Here are six simple ways to save money without reducing the protection you need.

1. Shop around early

Start comparing quotes three to four weeks before your renewal date. 

Use multiple price comparison websites, such as Compare the Market, Confused.com, Go.Compare and MoneySuperMarket. 

Just bear in mind that some insurers, including Direct Line and NFU Mutual, don’t appear on these sites – so you’ll need to check them separately.

• Find out more: what’s happening to car insurance premiums.

2. Pay annually if you can

Monthly payments often come with added interest, which means you’ll pay more overall. If you can afford it, paying your premium in full works out cheaper.

In our most recent survey of 71 insurance firms, some providers allowed customers to pay by the month without any additional cost, while others charged in excess of 30% APR.

Alternatively, consider using a 0% interest credit card to spread the cost. Just make sure you repay the balance before the interest-free period ends.

• Find out more: monthly car and home insurance prices are still packing a premium.

3. Check your details​​​​

Your annual mileage  and where you park your car overnight can all affect your premium – so it’s worth reviewing your details carefully.

Mileage is a common area where drivers overestimate. You can calculate it from your last two MOT certificates. Even a small difference could push up your costs unnecessarily.

• Find out more: Mr, Mrs, Miss or Ms: does your title affect your car insurance quote? 

4. Adjust your job

Insurers use your job title to assess risk, and small wording changes can affect the price.

Try different titles that still describe your role truthfully. For example, ‘hair stylist’ may be considered lower risk than ‘barber’. Always stay honest – giving misleading information could invalidate your policy.

5. Add a named driver

Adding a more experienced driver to your policy, such as a parent or partner, can sometimes reduce your premium, especially for younger drivers.

But don’t be tempted to name someone else as the main driver if they’re not. This is called ‘fronting’, it’s illegal, and it could void your insurance.

6. Haggle at renewal

If you find a better deal elsewhere, call your insurer’s customer retention team and ask if they can match or beat the price.

Many providers will offer a discount if they think you’re serious about switching. If they don’t, be prepared to move.

• Find out more: how to win at car insurance haggling.