Exact time to buy car insurance cheapest revealed – get it wrong and you could pay £202 MORE

THE simple trick of renewing your car insurance at the right time could save you hundreds of pounds a year.

Motor insurance premiums dropped for the first time in two years between April and June, from £635 in the previous three months to £622, said the Association of British Insurers (ABI).

But even so, prices are still considerably higher than two years ago when they at one point sat at £470, so drivers should be looking for any way possible to cut costs.

Luckily, there are a number of tricks you can use to dramatically slash what you are charged for your premium.

And one includes renewing your car insurance policy at the exact right time, one hack hailed by consumer expert Martin Lewis.

Research from Go Compare has revealed that locking in a new motor insurance premium 26 days before renewal could save you hundreds of pounds.

The price comparison site found that the average price drivers pay when renewing at this time is £367.

But do it on the day of renewal and this figure rises to £569 - £202 more.

Despite the potential savings to be made, Go Compare found that only 2% of people it surveyed renew 26 days before their policy ends.

Tom Banks, car insurance expert at Go.Compare, said: “While many of us know the importance of shopping around for our car insurance, it’s less likely we’re aware of how the price might change depending on when we buy.

"Our data shows that the price of car insurance can vary a lot depending on how close you are to your renewal date, and it can pay to be organised - with policies bought 26 days in advance costing 55% less on average than those with a same-day start date.

"So, to get the most for your money, we recommend keeping a note of your renewal date and starting your car insurance search well in advance."

Go Compare's data also found that even a couple of days' difference in renewing your policy can save you money.

It found the average quote for a policy when buying a policy 24 days before renewal was £377, but £384 if locking one in 18 days before - a £7 gap.

Meanwhile, locking in a new deal four days before renewing would see you quoted £448, it found, but two days before was £484 - £36 more.

How else to cut the cost of your car insurance

Renewing your car insurance policy at the right time is one sure fire way to cut costs - but there are others.

Tom said it's worth parking your vehicle in a garage or driveway, if you have one, as parking off-road can lower the chances of it being vandalised or stolen.

"Insurers will deem you as less of a risk to insure, thereby lowering your premium," he added.

Paying annually is also the best course if you want to pay less overall.

Tom said: "If you pay monthly you could find yourself forking out for added interest and additional fees; paying annually helps you avoid this."

If you've got the budget, consider installing alarms and other safety devices in your car too.

"These could help bring your car insurance cost down, as well as keeping your vehicle safe," Tom advised.

Up your voluntary excess as well - this is the maximum figure you have to pay if you are involved in an accident.

By increasing your excess, you are taking on more financial responsibility for your driving - insurers reward this by offering you a cheaper premium.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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