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.

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