31 March 2017 – Even savvy drivers who switch their car insurance to a new provider each year could still be missing out on significant savings. According to the latest research by comparethemarket.com, consumers should consider switching their car insurance three weeks before the renewal date to take advantage of the optimal saving. By switching at the timeliest moment, consumers could stand to save £349 on motor insurance over the course of the year.
Getting the timing right on insurance renewals leads to significant savings, but further steps are being taken to help consumers remember to consider switching provider. From Saturday (01 April 2017), following the Financial Conduct Authority’s previous ruling, all general insurance providers must show the price of last year’s premium on renewal notices, meaning consumers will be able to see by how much their new premium has either increased or decreased. This move should encourage more people to compare providers and search out a more cost-effective deal ahead of renewal.
Comparethemarket.com data shows drivers can stand to save, on average, £349 if they opt to switch their car insurance provider three weeks prior to the renewal date, when the average cost of a policy is £407, in contrast to the average price on the day of renewal which is £756. However, 23% of consumers wait until the day of renewal to shop around for a new policy. Drivers who wait until the last day to switch are therefore collectively missing out on an estimated £1.12 billion of savings.