Buying your car insurance before your policy needs to start is likely to help you save – but how far in advance do you need to shop around to get the best price?
Unfortunately, 98% of drivers are timing it wrong and don’t buy their car insurance on the cheapest day, according to data from Go.Compare.
The comparison site found this could be costly, as failing to hit the optimal day to buy your policy could mean paying up to 55% more.
Here, Which? reveals the cheapest day to renew your car insurance policy and offers tips to help you negotiate your quote even lower.
- Find out more: best car insurance
The cheapest day to buy your car insurance
New data from Go.Compare reveals the cheapest and most expensive day to renew your car insurance, based on the average cost per year.
Table note: *Based on Comprehensive Car Sales purchased through Go.Compare between May 23 and Apr 24. Excludes NTUs, Test Quotes and Quotes where no premium was returned. Premiums relate to policies where the customer chose to pay annually only. Limited to policies where the proposer was the main driver and was aged 18+. Price paid between £35 and £1,2000.
While you can buy car insurance up to 29 days before your renewal date, the analysis found the cheapest option is buying it 26 days in advance, with an average cost of £367.
If you wait until the same day your policy starts, you could end up paying £569, which is 55% more.
Despite these savings, Go.Compare says only 2% of people buy their insurance at the optimal time, missing out on potential savings.
The findings also show that prices gradually increase as the renewal date approaches, with sharp rises in the last few days. This highlights the benefit of planning ahead to get the best price on car insurance.
- Find out more: the cheapest and most expensive cars to insure
5 ways to haggle your car insurance premium
While it’s important to know the cheapest day to renew, it’s also useful to know how to haggle.
Using both strategies can help you save more on car insurance. Here are some practical steps to help you negotiate better quotes:
- Do your research: check price comparison websites like Confused.com, Go.Compare, and Moneysupermarket.com to see what other insurers are offering. This will give you a benchmark for negotiation.
- Speak to the retentions department: when you call your insurer, ask to speak directly to the retentions department. They have the authority to adjust your premium to keep you as a customer.
- Highlight lower quotes: mention any lower quotes you’ve found from other insurers. Ask if your current provider can match or beat these prices.
- Bundle your policies: consider bundling multiple policies, like car and home insurance, with the same provider. Insurers often offer discounts for bundling, which can lower your overall costs.
- Be prepared to walk away: let your insurer know you are willing to switch providers if they can’t offer a competitive rate. Having an alternative policy lined up can strengthen your negotiating position.
Find out more: how to negotiate your car insurance
Check you’re getting a great deal and search for a new car insurance policy using the service provided by Confused.com. Get a quote now
Will you save by switching?
Loyal customers often face hefty increases in their car insurance premiums.
According to Confused.com, a survey of 2,000 drivers revealed that 75% of those who renewed their insurance between January and March this year experienced an average rise of £94.
However, switching to a new provider could save you a significant amount. The survey found that 45% of drivers who faced higher renewal quotes managed to save around £90 by changing insurers.
To find better deals, start by comparing quotes on websites such as Confused.com, GoCompare, Compare the Market, and MoneySuperMarket.
Keep in mind that some insurers, like Direct Line and NFU Mutual, might not appear on these comparison sites.
- Find out more: what’s happening to car insurance premiums?
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.