Experts say you could save £1,371 when renewing car insurance | Personal Finance | Finance

Finance experts have revealed the exact date to renew your car insurance to make significant savings. On average, this could see the price reduce by a “massive” £1,371.

Car insurance is a legal requirement to drive on UK roads. At the very least you must have third party insurance, which means you’re covered if you have an accident causing damage or injury to any other person, vehicle, animal or property. 

While it is a necessary expense, and can help with costs if something does go wrong, it can seem like a big drain on your funds. Luckily there are steps you can take to try to secure as low a price as possible.

According to the team at Money Saving Expert (MSE), which was founded by Martin Lewis, there is an ideal time to look for car insurance – whether for your first time or as a renewal. They suggested this could more than halve the cost.

On the MSE website, it recommends getting your quote a few weeks before it’s actually needd. It said: “The best time to get car insurance quotes is 20 to 27 days before you need the policy to start.

“Your renewal notice from your insurer will show the new price for next year (and the price you paid last year). It’s typically sent around 28 days before your current policy ends.

“If you do nothing, it’ll usually automatically renew at that new price, so always have your renewal date in your diary to take action.”

More specifically, you should ask for a quote exactly 26 days ahead of when it’s needed.

MSE said: “The cheapest time to get quotes is 26 days ahead of your renewal date – making it the best time to get a quote as your cover becomes more expensive the closer you get.”

MSE added that this could save the average person £1,371 on their annual bill. “Our analysis of over one million quotes from January to April 2024 from MoneySupermarket showed a policy costs an average of £2,277 a year on renewal day,” MSE continued. 

“But 26 days earlier the average is just £906 a year, a MASSIVE £1,371 less.”

However, it warned: “In general, the closer to your renewal date you get quotes, the higher risk you’re deemed to be (we’ve heard that it can show insurers you’re a bit disorganised). 

“But getting quotes too early, for example, 28 plus days out, can also push the average price up – likely as fewer insurers will provide quotes that early.” One MSE reader, Hayley, commented: “Renewed three weeks early after your tip. 

“It’s gone from a renewal price of £108 a month to £51 a month [saving £684 a year]. Checked the comparisons later and it went back to £100.”

Another reader, Cara, said: “Just did mine (24 days early) – saved over £690 over my renewal price.”

You can also save money by using MSE’s online car insurance tool, here.