Buying car insurance at the last minute can cost you an extra £132
Car owners who look to buy car insurance on the day they want their cover to start risk paying £132 more than necessary, according to data from the price comparison site.
MoneySupermarket found that drivers who locked in their premium eight days before their policy started saw a typical saving of £132 compared to drivers who bought it on the day their current cover expired.
Drivers that left buying their insurance to the last minute faced the highest prices, with premiums rising steeply three days before a policy’s expiry, and the most expensive policies being those bought on a current policy’s end date.
Rachel Wait, consumer affairs spokesperson at MoneySupermarket, said: “If there’s one thing to remember when it comes to saving money on your car insurance, it’s making sure you shop around before your policy automatically renews – you could save hundreds of pounds.
“What our data shows is that the time you run your quotation can also have an important bearing on the level of savings you can make. Insurers know that many of us leave buying insurance to the last minute, which is why we see prices increasing closer to the date a policy is due to expire. To avoid higher costs, you should shop around for your new policy at least a week before the old one runs out and lock in the price you are offered at that point – those that do can make substantial savings.”