Christopher Sharp used Martin Lewis' tip to save £300 on his car insurance by comparing prices 26 days before his renewal date. The MoneySavingExpert founder shared the method on his ITV show.
The 26-day sweet spot
Lewis recommended comparing car insurance quotes exactly 26 days before your policy ends. He said: "When you get your quote, so the number of days before you get a new policy, which will normally be your renewal date, can massively affect the price of the quotes you're getting. This is based on millions of quotes. So, the sweet spot is roughly 26 days before the new policy." He added that a couple of days either side does not matter.
How it saved £300
Sharp received his renewal letter, compared quotes on a comparison website, and found savings of around £300. Before switching, he asked his existing provider if they could match the lower price; they declined, so he cancelled automatic renewal. Another woman, Selene, told MoneySavingExpert.com she saved £445 using the same technique.
Why it works
Lewis explained: "What actually happens is, all of insurance pricing is based on... who is a bad risk? The type of people who leave it to the last minute are deemed to be a higher risk than people who go and get their insurance earlier."
Other reasons for rising premiums
MoneySavingExpert's Chris Collier noted that even if a driver's circumstances haven't changed, premiums can rise due to insurers' increased repair costs, strategy changes, or risk profiling. He said: "The rise you've seen could be down to rising costs that insurers have to pay to get vehicles repaired or replaced (such as rising staff costs, more expensive parts). Or it may be that your insurer has changed its strategy and no longer wants to offer the best prices, or no longer wants customers with your risk and driving profile."
