Monaro Pete
Well-known member
- Joined
- Apr 23, 2016
- Messages
- 995
A tip from MSE, AKA Martin Lewis
With car insurance, like comedy, it seems timing is everything. We've analysed 18m+ quotes from Jan to May (after requesting data from Compare The Market, Confused & MoneySupermarket) and were shocked to discover huge price variances depending on when you get a policy.
The optimum time is 21 days before the new policy starts (which will be at renewal for most). Too early or too late and the price shoots up, as this graph shows. In fact, a typical policy would cost an avg £1,156 on renewal day, but £589 three weeks earlier.
When we challenged insurers about it, some thankfully were open. LV told us: "One factor is the gap between the date the quote is requested and the renewal date. Our historic claims data shows riskier drivers renew their policies nearer to renewal."
For more, see the full price investigation. MSE founder Martin Lewis says:
Car insurance pricing is based on a mix of 'actuarial risk' and which section of the market is targeted. To find the risk they look for patterns, and we've uncovered that one of those is how early you get a quote before renewal. To avoid being a last-minute loser, everyone with car insurance should, at the very least, put a note in their diary 25 days before renewal to sort it within a week.
Bear this in mind when you renew your insurance
With car insurance, like comedy, it seems timing is everything. We've analysed 18m+ quotes from Jan to May (after requesting data from Compare The Market, Confused & MoneySupermarket) and were shocked to discover huge price variances depending on when you get a policy.
The optimum time is 21 days before the new policy starts (which will be at renewal for most). Too early or too late and the price shoots up, as this graph shows. In fact, a typical policy would cost an avg £1,156 on renewal day, but £589 three weeks earlier.
When we challenged insurers about it, some thankfully were open. LV told us: "One factor is the gap between the date the quote is requested and the renewal date. Our historic claims data shows riskier drivers renew their policies nearer to renewal."
For more, see the full price investigation. MSE founder Martin Lewis says:
Car insurance pricing is based on a mix of 'actuarial risk' and which section of the market is targeted. To find the risk they look for patterns, and we've uncovered that one of those is how early you get a quote before renewal. To avoid being a last-minute loser, everyone with car insurance should, at the very least, put a note in their diary 25 days before renewal to sort it within a week.
Bear this in mind when you renew your insurance
