Here in the UK, many people are still looking for ways to either reduce or at very least contain their household expenditure. For many of us, our car insurance premiums are something that we rarely see reduce when we receive our car insurance renewal notice.
However, an interesting survey by the price comparison website MoneySupermarket, has revealed some intriguing findings with regard to the effect that the timing of doing something about your car insurance renewal notice can have on your premiums.
You probably receive your renewal pack a few weeks before your car insurance policy is due to end in which you will be informed what your new premium will be and when this will come into effect. Well, did you realise that the closer you get to the renewal date before shopping around the more expensive your car insurance could be with another insurer.
When conducting this survey the price comparison website looked at approaching 13 million quotations from car owners that were trying to get a cheaper quote from another provider. Interestingly, it found that if you were to purchase your car insurance from another provider with in excess of a fortnight before your existing car insurance policy expires the average premium would be £434 per annum which is a saving of as much as £33 per annum when compared to doing so on the renewal date.
If you delayed arranging alternative car insurance by one to two weeks you may find yourself paying an average of £448 per annum. In the last week before your policy expires you could expect to pay an average of £452. If you delay doing anything about your car insurance renewal until the expiry date of your existing car insurance policy the average premium would be around £467 each year. It was estimated that the UK motorists could collectively save as much as 500 million pounds.
Another interesting statistic was that 55% of motorists waited until less than a week before their existing car insurance renewal date finished.
So, it would appear that you are likely to get a better deal the sooner you make some enquiries about renewing your car insurance premiums.