SAVE WITH TIMING: Insurance advice for drivers (Image: CarCloud)
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Most of us have heard that the average cost of a car insurance policy has increased over the past year. It’s tempting not to think about the cost of your next policy until you absolutely have to buy it, but leaving your renewal until the last minute could actually result in you paying more for the same level of insurance cover.
Arranging your car insurance earlier could end up costing you less than leaving it until just before the old policy expires. The expert team at CarCloud recommends that you renew your car insurance three to four weeks before your current policy expires. This particular period of time often begins shortly after your current insurer sends you their renewal quote.
The potential advantage of renewing during this three to four week time period is based upon a developing body of evidence and expert comment. A survey by comparison website Go Compare (earlier this year) reported that it’s usually cheapest to renew car insurance around 21 to 28 days before the old policy expires. CarCloud’s car insurance partner, MoneySuperMarket, also comments on their own website that “Purchasing your car insurance several weeks before it’s due can often result in lower premiums.”
You might question why vehicle insurance could cost you less if you act during this 21 to 28 day period and, for many, the answer is genuinely surprising! Some insurers have apparently found a statistical link between people who renew their car insurance early and people who make fewer car insurance claims. It seems that some insurers have learned that, on average, people who are careful and organised about their car administration also often turn out to be more careful drivers. Appearing to be a lower risk driver typically results in paying lower prices in the world of car insurance.
CarCloud recommends that you use a comparison website to compare insurance prices a few days after you receive your renewal quote (which often arrives about a month before your current policy expires). Make sure to compare prices around three to four weeks before the renewal date, as you may be quoted a higher price either before or after this particular period of time.
Signing up for your free CarCloud account could help you to get organised on your car insurance renewal every single year. Arrange your CarCloud account today and they’ll send you reminders when you move into this 21 to 28 day insurance renewal period, so that you don’t miss out on any potential savings. You can also compare car insurance quotes without ever leaving your CarCloud account, thanks to their partnership with MoneySuperMarket.
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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.