Martin Lewis has issued a warning to drivers that car insurance premiums could rise by up to 50 percent if they leave renewal until the last minute. The money-saving expert advises that the 'sweet spot' for obtaining quotes is 21 days before the current policy ends, as insurers view such drivers as lower risk.
Speaking on the Martin Lewis Money Show, Lewis explained that insurers consider those who plan ahead as 'low risk', while those who wait until the last moment are seen as higher risk. He highlighted two success stories from viewers who saved hundreds of pounds by following the 21-day rule.
One driver, Bob, said: 'As my insurance was up for renewal at the beginning of November I took Martin's advice and started to check other sites. I have just signed with AA at half the price I paid for this year's price, saving nearly £300.' Another viewer, Netti, confirmed she saved £500 by renewing within the 21-day window.
Confused.com has backed the advice, stating that premiums are 'usually cheapest' when quotes are obtained 21 to 30 days before renewal. The comparison site urges drivers to shop around rather than automatically renewing with their current provider, noting that drivers could save an average of £254 by comparing quotes.
Compare the Market warns that younger drivers stand to save the most, with those up to age 20 potentially saving £360.57 compared to renewing the day before the policy starts. While savings for older drivers are smaller, experts say they are 'definitely still worth having'.
