Best day to buy car insurance revealed – and drivers could chop £570 off bills
BUYING car insurance 21 days before a new policy starts could save drivers £570 - and almost halve their bill.
An investigation by found that locking in to a new deal three weeks early is the ideal time to get the most for your money.
For a typical policy that costs £1,156 on the day of renewal costs £589 21 days earlier - saving motorists £567.
But it doesn't always pay to be organised though because the investigation also found that getting your insurance too early could also mean that you're overpaying by hundreds.
On average, a policy bought 30 days in advance - the earliest you can usually get a quote on comparison sites - could cost motorists £531 MORE than holding off for another nine days and buying at the 21 day mark.
MSE asked a number of insurers why there was a massive price difference and they said that it's all down to risk.
Someone who leaves renewing their policy until the last minute is seen as a higher risk - some insurers even reckon they've seen a direct link between those who wait longer to renew and the amount of claims they make.
So if you're the type of person who holds out for a better deal, then you're actually probably making things worse for yourself, even if you're a brilliant driver.
Those who are super organised are penalised getting a quote a month in advance because there are simply fewer insurers returning quotes that early.
MSE's top boss Martin Lewis said: "Car insurance pricing is based on a mix of "actuarial risk" and which section of the market is being targeted.
How to save on car insurance
CAUGHT driving without insurance will see you slapped with a huge fine - but it doesn't come cheap either. Here are some tips you can follow to get you the best ideal on your insurance:
- Buy 21 days in advance - Purchasing a policy three weeks in advance can cut your bill in half. Buy 30 days in advance it could cost you hundred because there aren't as many policies out there. Taking out a policy too late and insurers will deem you a higher risk and whack up your premium.
- Never accept a renewal quote - Your policy could double overnight if you're not careful. Make sure you put a reminder in your phone of when it's up and shop around for a better deal.
- Check more than one comparison site - These sites offer different deals so it's best to look at more than one site at the 21 day mark to see what they can offer.
- Check Direct Line and Aiva separately - Two of the biggest companies aren't on comparison sites so you'll need to check them too to see if they can offer you a better deal.
- Don't wait for a renewal - If you find a better deal elsewhere, you can cancel your existing policy and get a refund for the rest of the year. There will be a fee though - usually £50 - so take that into consideration when you look at how much you can save.
"To find the risk they look for patterns, and we've now uncovered that one of those is how early you get a quote before renewal.
"To avoid being a last-minute loser, everyone with car insurance should, at the very least, put a note in their diary 25 days before renewal to sort it within a week."
Of course, the exact figures you get may be different to these ones because they're averages and your premium is tailored to you.
But the principle is still the same - you'll still find the best deals when taking out a new policy 21 days in advance.
The boffins over at MSE looked at more than 18MILLION quotes from January through to May using data from comparisons sites , and .
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