Plan Ahead to Save Hundreds on Car Insurance, Study Finds

Drivers could save three-figure sums by switching car insurance provider 20 days before their renewal date, according to new research.

The website comparethemarket.com conducted analysis of industry trends and found that, on average, car insurance policies are £306 cheaper if switched before renewal date, compared with the act of switching on the day itself.

A new deal on renewal day is likely to cost £707 on average, with someone planning ahead of time paying £401.

The latest study of those purchasing car insurance also found almost a third (32%) of quote comparison inquiries took place the day before a policy was due to end or on the day itself.

Comparethemarket.com director Ursula Gibbs said; “While motor insurance has typically been cheap at the start of the year, 2022 could be different.

“With a major regulatory rule change fast approaching, the cost of insurance could increase significantly next year.

“If your policy is due to auto-renew in the next few weeks, you may be better off switching sooner rather than later.”

New rules are set to be enforced by the Financial Conduct Authority that will prevent insurers from offering existing customers higher quotes than new customers, thus bringing to an end the loyalty penalty for simply auto-renewing.

But that could see ultra-cheap deals on the market at a premium.

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