Deferring Policy Start Date May Lower Premium

Some interesting research has been carried out by Which? into the impact delaying taking out car insurance by just a day can have on your premium. You may be surprised by just how much when you read the rest of this news article.

You may be able to get cheaper car insurance cover by getting a quote in advance of when you want the policy to start but make sure that you do not leave yourself uninsured

Some insurance companies charge a lower car insurance premium if you defer cover by one day but do not leave yourself uninsured.

Apparently, the research involved getting a number of quotes from some of the major car insurance companies with the start date of the cover being the date of the quotation. Then further quotes were obtained with the only difference being that the start date was changed to the following day. It is usually possible to do this yourself when you either get quotes online or over the phone.

With the majority of the 15 companies that the above was done with it made no difference to the premium. However, with one insurer it reduced the premium by 49% that saw the premium quoted come down to £780 per annum. With another the premium dropped by £95 per annum, with another a drop of £115 per annum and with another a reduction of £121 per annum.

So, why should just a day’s difference in the quote start date make such a difference in some cases? Well, apparently, it is believed that someone taking out a car insurance policy on the same date of the quote is more likely to be a greater risk than another motorist that buys his or her cover in advance. Therefore, the later benefits by getting cheaper car insurance with some insurance companies.

In which case, when you get quotes for this type of cover why not shop around well in advance and see if you can get a better deal when compared with leaving things to the last moment. Obviously, you would not want to find yourself in a situation where you have left yourself uninsured for one day. For those of you that already have car insurance, you should receive your renewal notice in plenty of time in order to make the necessary enquiries when getting a quote through the likes of our website.