Drivers may save greater than £300 on common by switching 20 days earlier than their coverage is because of finish in contrast with on the renewal date itself, evaluation has discovered.
n common, automobile insurance coverage insurance policies are £306 cheaper if drivers change insurance policies 20 days earlier than their renewal date in contrast with on the day their coverage ends, in response to comparethemarket.com.
Discovering a brand new deal on the day the coverage ends prices £707 on common, the web site discovered, in contrast with £401 for somebody switching 20 days earlier than.
The worth tends to creep up the nearer the renewal date will get, with a coverage sometimes costing £431 two weeks earlier than, £506 per week earlier than, and £617 the day earlier than a coverage expires, the web site discovered.
Round a 3rd (32%) of quote comparability inquiries are made the day earlier than a coverage ends or on the top date, comparethemarket.com mentioned.
Greater than half (58%) look to modify inside one week of their coverage ending.
Whereas motor insurance coverage has sometimes been low-cost at the beginning of the yr, 2022 might be totally differentUrsula Gibbs, comparethemarket.com
Historically, the price of insurance coverage is usually cheaper at the beginning of the yr as a consequence of reductions provided by insurers.
Insurance coverage pricing relies on varied danger elements, together with annual mileage, the make and mannequin of the automobile, and former claims historical past.
Common premiums are additionally usually round £50 greater in December than throughout the remainder of the yr.
Nonetheless an insurance coverage pricing shake-up will happen at the beginning of 2022.
The Monetary Conduct Authority (FCA) is introducing new guidelines in January, stopping insurers from providing current clients greater quotes than new ones for automobile and residential insurance coverage.
The transfer is anticipated to avoid wasting shoppers £4.2 billion over 10 years general.
It would convey an finish to the “loyalty penalty” paid by loyal clients whose costs creep up yearly – however it may imply that common switchers wrestle to seek out ultra-cheap offers.
Fewer vehicles on the roads throughout lockdowns, and reforms round private damage claims, have helped to maintain automobile insurance coverage premium prices down just lately.
Comparethemarket.com director Ursula Gibbs mentioned: “Whereas motor insurance coverage has sometimes been low-cost at the beginning of the yr, 2022 might be totally different.
“With a significant regulatory rule change quick approaching, the price of insurance coverage may improve considerably subsequent yr. In case your coverage is because of auto-renew within the subsequent few weeks, you might be higher off switching sooner reasonably than later.”