Drivers buying car insurance urged to follow ‘27 day’ rule to ‘save money on policies’
Many motorists are unaware that their passivity can generate more expensive car insurance premiums.
Car insurance experts have recommended that drivers purchase auto coverage policies a minimum of 27 days before their renewal date to optimise prices.
Instead of buying a plan 27 days before the deadline, many motorists automatically renew their coverage, which may prove more expensive as the average price for protection in the UK rose 34 per cent from the end of 2022 to the end of 2023.
Automatic renewal can present a price increase to match inflation and more drivers filing claims, notes Mervyn Skeet, director of general insurance policy at the Association of British Insurers.
Another motoring finance expert, Martin Lewis, founder of MoneySavingExpert.com, suggests drivers buy auto insurance 23 days before renewal for another commonly overlooked reason.
Lewis said: “The perfect time to get car insurance is 23 days before your renewal. That’s not for your renewal quote, that’s for going onto comparisons to get different quotes.
READ MORE: Drivers are only just realising what the hooks in the car are actually for
“It seems absolutely ridiculous, but insurance pricing is all about actuarial risk. And what their risk shows them is the type of people who get car insurance early are a lower risk so they give them a lower price.
“You might pay nearly double if you wait until the last minute to get your car insurance.”
The Association of British Insurers found that car insurance premiums increased in price one percent from last quarter to a £635 average, GB News reports.
Don't miss...
Car insurance prices soar by £284 in just 12 months in blow to motorists [LATEST]
Car insurance firms target some customers in 'a tax on the poor' [ANALYSIS]
Martin Lewis warns drivers at risk of ‘fraud’ in bid to cut car insurance [COMMENT]
Tom Banks, motoring expert at Go.Compare, said: “These latest figures from the ABI will no doubt be welcomed by motorists, who have been feeling the impact of premiums increasing for some time now.
“The escalating cost of car insurance premiums in the past couple of years has been widely attributed to the rising costs of replacements and repairs, as well as inflation.
“It’s good news to see this is now stabilising and we will see this reduction in premiums being passed onto the policyholder.
“However, it also shows that the industry is working hard to keep the costs down for consumers, so only time will tell if this can continue or whether we will see premiums increase again,” according to GB News.
