Money Saving Expert Martin Lewis advises drivers to start searching for new car insurance quotes 26 days before their renewal date to potentially save up to 50%. He explains the rationale behind this strategy based on insurance pricing trends and consumer behavior.
Martin Lewis has given drivers a crucial tip to help them save up to 50% on their car insurance. Speaking on his BBC podcast, he discussed an analysis of around 18 million insurance quotes, revealing that the best time to find a new insurance deal is 26 days before your desired start date. Lewis strongly encouraged listeners to mark this date on their calendar to ensure they get the most competitive quotes.
The Money Saving Expert founder explained, 'You always want to be getting quotes around 26 days before you want the new policy to start. If it's anything between about 18 days and 28 days, you're pretty fine. 26 is the sweet spot.' For example, if your current policy expires at the end of March and you want a new policy starting on April 1st, start looking at quotes on March 6th. Lewis emphasized that this differs from the renewal price your insurance provider might send you. He clarified, 'Your insurance is going to send you a renewal note, it might be two weeks before, it might be a month before. That's your renewal, that price is irrelevant of when they send it to you. It's about the price when you go and get quotes across the market. When you go on to a comparison site, that's the 26-day date.'The reason insurance companies offer the cheapest deals around this time is linked to how insurance prices are calculated. Prices are based on general behavior patterns and the likelihood of claims. Those groups considered more likely to make claims generally pay higher premiums.Lewis explained to listeners, 'What insurance data shows is that people who renew on the last day are riskier. You're riskier if you are insuring at the last minute. You can sort of understand how that behavioural trend works. People who insure at the last minute haven't put that much practice in, and aren't as prepared, and aren't as organised as everyone else.' He added, 'That translates into actuarial risk and the amount of claims. What you have to do is shift yourself into the risk category where people are the lowest risk, and the lowest risk is around three to four weeks before renewal.' Lewis highlighted the significant savings achievable by acting early, stating that a 50% difference in price could be seen compared to last-minute renewals. He shared numerous examples from people who contacted him, reporting substantial savings by shopping around earlier. One person wrote in, saying they found the best quote price at 21 days before their expiry date, at £340. Yet, for the same quote the day before expiry, it would have cost them £637. Another driver messaged the show stating they only received their quote from their provider 14 days before the expiry date. Lewis was unimpressed, saying 'I don't need your excuses' and urging them to be proactive. He advised, 'Go and check when your car insurance renewal policy ends. Go and put in your diary 26 days before, or maybe four weeks before that so that so you give yourself a couple of days if you're busy, that it's time to go and get those quotes.' Lewis suggested another way to set a reminder: 'Send yourself a delayed send email. That is my new organisational system, I do it all the time. I send myself emails and reminders.
MARTIN LEWIS CAR INSURANCE SAVINGS RENEWAL COMPARISON SITES
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