New research has found that the cost of car insurance rises significantly depending on how urgently you need the cover to start.
Comparethemarket.com found that premiums peak on the day the drivers’ existing policies expire or automatically renew. It was found that on renewal day, premiums cost an average of £685.95.
Almost a quarter of drivers leave buying their new cover until their renewable date, and 38 per cent buy on the day itself or the day before.
It was found that the best time to buy cover is three weeks before your existing policy is set to expire, due to the fact insurers are likely to have to compete harder on their price, based on the premise that divers have more time to shop around.
Although this is the case, only 1.5 per cent of drivers buy their new policies at that point, when the average cost is £359.40. This means the difference between the two average figures is £326.55.
These figures are based on the cheapest policies that a customer had clicked through to buy, and shows how prices change depending on how soon the customer say they want their new policy to begin.
January is notoriously a cheap time to buy car insurance, as insurers advertise more competitive quotes to try and get people to get their finances in order at the beginning of the year.
Insurance prices have risen drastically in the last year, partly due to an increase in insurance premium tax. The average premium in November 2015 was £567.90, which is an increase of almost £100 from November 2014.
Insurance prices are at their highest in December, with the average premium costing £600.73 last month!
The advice is to shop around for insurance, and to do so in plenty of time. Those who don’t shop around at all are estimated to lose and average of £200 a year if they just allow their policy to auto-renew.
The policy costs will also vary depending on make and model, with insurance on newer models costing, as a general rule, less than older models. If you are looking to sell your car and upgrade to save on insurance, we can help!
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