Buying car insurance on this day could see your premiums DOUBLE

DRIVERS who buy their car insurance on a particular day could see their premiums doubled.

Insurers use customer data to hike up prices for motorists who appear less likely to renew their cover.

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Those who choose to extend their insurance on the final day of their plan could be charged £200 more than if they had renewed it out 24 hours beforehand.

A ,  claimed Churchill customers could save £225 if they renew their insurance schemes 21 days in advance.

LV customers could save £165 but More Than customers could be charged £99 extra if they wait until the last minute.

Dan Hutson, head of motor insurance at Comparethemarket told the newspaper: "People probably aren't aware that they are being financially penalised for buying insurance at the last minute."

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The data insurers have access to, links customers to their likelihood of making a claim.

Insurers know when a customer's cover is about to expire because they are asked when they want their new policy to start at the time of purchase.

The moment they receive a letter to renew their insurance, premiums begin to rise.

A spokesman for the Association of British Insurers said motorists should always shop around to get the right deal for their needs.

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The spokesman said: "Motor insurance is fiercely competitive – it pays to shop around to make sure you get the right deal for your needs, which may not always be the cheapest."

A Churchill spokesman told the newspaper: "The further a person is to their insurance start date when they obtain a quote the less likely they are to claim."

LV explained that prices were calculated so "safer drivers did not subsidise riskier drivers" through their cover.

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