Avoid the last-minute panic: the cheapest day to renew your home and car insurance

Buying and renewing insurance online can be stressful and confusing. With prices changing all the time, how do you know you’re getting the best deal? We’ve put together some tips, based on millions of real price quotes, to help you save on your home and car insurance bills. cheaper-insurance

Don’t leave it to the last minute

Research based on millions of quotes from multiple price comparison websites has shown that buying your car insurance on the renewal date - or leaving it to renew automatically - can cost up to £300 more than buying just a few weeks before. Similarly, renewing home insurance early could save you 20% over buying on the date your policy runs out.

Insurers say this is all about risk. Customers who don’t renew until the last minute might be less prudent and more rushed in other areas of their life, making them a riskier prospect to insure.

A more cynical explanation is that insurers charge higher prices close to your renewal date simply because they can. Insurance premiums are based on supply and demand, going up when you urgently need to renew. So when your insurance is about to run out, insurers know that you don’t have time to shop around - particularly when it comes to car insurance, because need it to drive legally! - and you’ll have to accept the price they offer you.

So when is the best time to buy?

Three weeks in advance...

You’re likely to find the cheapest price on both home and car insurance three weeks before your policy expires. The savings apply to all age groups, but drivers aged 21 to 24 are likely to see the biggest difference. Don’t forget many insurers lock in a quote for 30 days, which gives you time to shop around.

...in January…

Experts recommend buying insurance in January. Even though demand is high, with those New Year good intentions driving many customers to get their finances in order, competition is also high as insurers vie for your business. Conversely, prices are higher and more subject to change in December.

...on a weekday.

Some industry experts note that insurance tends to be more expensive on Saturdays and Sundays. Demand is higher then, as more people have time to shop.

More tips

- Always compare and be prepared to switch! Shopping around can save you hundreds on your auto-renewal quote. Don’t forget that home cover premiums vary too, because different insurance firms use different underwriting criteria to assess quotes.

- You may be able to save even more on your car insurance by adding a second driver. Particularly if you’re a young or new driver, having an older and/or more experienced driver, such as a parent, as an additional named driver can bring down your premium.

- Fully comprehensive car insurance is usually cheaper than third party cover.

Need expert help with your debts? Complete our form to request a callbackRequest a callback
  • 0161 669 8925
  • 0161 669 8925

Articles home

Top of page

What solutions are available?
Complete the form and our friendly advisor will call you back to discuss the best way forward.

Your total debt?

£2,000

Just a few more details before we calculate your results

Go to final step
Go to final step

We just need a few more details

Please remember, the form above is just an information tool. One of our advisors will be in touch to answer any questions you may have and offer you more personalised advice on how to resolve your debt problems.
About us

We've been helping people get out of debt for almost 20 years. Read more about what we do and the charities we support.

Read more
Fees & key info

Read more about the fees involved with each of the solutions we provide.

Download the Insolvency Service guide to dealing with creditors.

Read here for information about our Complaints Procedure and referring a complaint to the Financial Ombudsman Service.

Conditions Apply. Repaying your debt over a longer period of time can increase the total amount to be repaid. Your ability to obtain credit will be affected. Fees are payable when continuing service is provided.
Our awards GP Award

Every month we help 1000s of people to get out of debt. We are proud of the service we provide and of the awards we've received.

Read more
Top 5 tips for
beating debt

Read our top 5 expert tips on how to beat debt and deal with your lenders.

Read more