Experts are calling on motorists to renew their car insurance on one specific day to ensure they save, although research shows 98 per cent of people are missing out.
New research from a leading car insurance provider has revealed that only two per cent of drivers are making the highest savings by renewing on one particular day.
Data found that the average car insurance premium costs £367 if purchased 26 days before the starting date of the policy, a huge saving over other motorists.
In comparison, people who buy car insurance with the same-day start date could end up paying 55 per cent more, with average policy prices starting at around £569.
Drivers can often save money on their car insurance through shopping around for their policy
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It is possible for drivers to buy car insurance up to 29 days before the policy is set to begin, but the GoCompare research still shows that 26 days before is the optimal time to buy.
If someone were to buy their policy 29 days before their start date, it would set them back £383 – £16 more than those choosing to renew 26 days before.
Experts frequently call on drivers to shop around before they renew their car insurance as there will likely be better offers on the wider market, thus saving them more money.
This has never been more important as the cost of living and motoring continues to increase, with car insurance prices rising by more than £100 compared to the same time last year.
Tom Banks, car insurance expert at Go.Compare, said several factors can influence the price of car insurance, namely annual mileage and where the car is parked overnight.
He added: “While many of us know the importance of shopping around for our car insurance, it’s less likely we’re aware of how the price might change depending on when we buy.
“Our data shows that the price of car insurance can vary a lot depending on how close you are to your renewal date, and it can pay to be organised – with policies bought 26 days in advance costing 55 per cent less on average than those with a same-day start date.
“So, to get the most for your money, we recommend keeping a note of your renewal date and starting your car insurance search well in advance.”
Banks urged drivers to be mindful of where they park to keep their car insurance costs low. If they have a garage or driveway, they are advised to use this as it lowers their chance of having their vehicle stolen, further forcing their premiums up.
People should also look to pay for their car insurance prices annually rather than monthly because they will avoid extra costs and interest.
The expert highlighted that the higher the voluntary excess, the lower the cost of the policy is likely to be.
However, he warned that drivers must ensure they have the means to pay the excess in the event of a claim or an accident.
So-called ‘car cannibals’ are targeting valuable parts even when the vehicle is parked on the driveway PASome motorists may also want an extra level of protection through additional security measures. This may include installing alarms or trackers to put criminals off from stealing the vehicles and more easily retrieving them if they are being tracked.
Not only will this increase the security of their vehicle and reduce the likelihood of it being stolen, car insurance companies will view the driver as taking more care to protect their car and likely reduce costs for them.