The Institute of Inertia looks at how you can save money by switching or renewing car and home insurance premiums well ahead of time
At what point do you tend to renew your car or home insurance policy? One month before? One week before? One day before? Did you know that there is in fact an optimum time to switch to make sure you’re getting the best deal?
Comparethemarket.com has found that car insurance premiums can be cheaper if renewed three weeks prior to their renewal date.
The Institute of Inertia was shocked to discover just how much money you could lose out on when it came to your insurance renewals. Research in conjunction with YouGov showed that even the savviest of consumers could save even more money - an extra £4.17 billion a year on motor and home insurance by timing their policy renewals/switches correctly.
The data further revealed that drivers could save on average £234 more if they opt to switch their car insurance provider three weeks prior to their renewal date, with the average cost of a policy being £366. But 15% of you are still leaving renewals until the day before, meaning you’re paying a high price for last minute renewals, an average of £600. Now that’s a big number!
On the otherhand, home insurance policies close to renewal tend to increase in cost until one week before renewal and then fall slightly before the final renewal date, although the cheapest time to renew is still 28 days beforehand. At its highest, home insurance costs on average £120, compared to £114 at it’s lowest.
So the average consumer is potentially throwing away an approximate saving of £240 per year by not timing their switch correctly. Simon McCulloch, Director of Insurance and Jasmine Birtles, Financial Expert and member of the Institute of Inertia explain more in this video:
Following research that shows consumers are losing out on approximately £240 a year by not renewing their insurance premiums well ahead of time, The Institute of Inertia took to the streets of London to see just how savvy consumers in the capital really are.