Money Saving Expert (MSE) has issued a warning to everyone paying for car insurance, advising motorists not to automatically renew their policy even if the premium is the same as last year, as there is a chance they are overpaying.
The warning comes as September is a new car registration month, making it a busy time for car insurance renewals. According to MSE, "the best time to find the cheapest quotes is three to four weeks before renewal, so right now if your policy's up next month".
Compare+ tool and last-minute renewals
The website's comparison tool, Compare+, allows motorists to find the cheapest quotes using MoneySupermarket's comparison, gives personalised tips, and informs you whether you're getting your quotes at the best time.
MSE also warned that you should avoid renewing your insurance at the last minute, as this tends to make it more expensive. It explained: "The key is to avoid leaving it till the last 10 days or so, as that's when prices really start to go up. This is because insurance is priced on risk, and providers' 'actuarial charts' apparently show those who renew last-minute are often a higher risk."
Mid-year switches and multi-car policies
Even if your car insurance is not up for renewal anytime near September, it is still worth checking whether you can save some money now. MSE wrote: "Many wrongly assume you can't change insurer mid-year. You can. And if the predictions are right and prices do climb, getting a new policy now means you benefit from locking in the current lower prices for a year.
"This is only worth doing if you haven't claimed and can find a materially cheaper price than you currently pay." It added: "If you can save, sign up for your new policy, then cancel your old one. You should get a pro-rata refund for the rest of the year (bar a £50ish admin fee), but you usually won't earn the year's no-claims bonus."
For those with more than one car at home, it is important to note that comparison sites do not check multi-car cover, so to find any savings, you will have to check manually. MSE advises checking separate policies if you are on a multicar policy, and checking multicar policies if you are on a separate policy, to check for any possible savings.
