Car insurance: Avoid making this common mistake to save over £500 on your policy

Car insurance: Avoid making this common mistake to save over £500 on your policy


Having a car insurance policy is a legal requirement for all active drivers in the UK.While these can be pricey, knowing when to take out a policy could make a difference to how much they cost. The Money Saving Expert website, founded by Martin Lewis, has offered advice on how to save on insurance.


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In a recent post, the website shared tips on how to save over £500 on car insurance.

It revealed waiting until the last minute could be the worst thing to do and leave drivers out of pocket.

In fact, renewing on the last day could see premiums jump from as much as £672 to £1218, an increase of £546.

The Money Saving Expert website compared over 50million car insurance quotes from four different websites.

The findings revealed the best time the cheapest and most expensive times to renew insurance.

Waiting until 24 days before the end of the policy could be the best time to get a new policy.

What’s more, renewing between 20 and 26 days before the policy ends could cut the cost by a whopping 40 percent.

The website said: “It works like this because the biggest factor in insurance pricing is ‘actuarial risk’, which means price is dictated by the likelihood of claims, based on data of millions of drivers’ claims history.

“Some of these, including car type, address and occupation, are well-known. Yet the regulator, the FCA, recently reported there are 50 to 400 different factors, many of which are hidden.”

By waiting until the latest date possible, the price of insurance goes up based on calculated factors.

This is because the insurance provider may consider the drivers who wait until the last minute as more risky.

It said: “This ‘days before renewal’ kink is one of those factors. Insurers have admitted to us that quite simply drivers who leave it until the last minute are statistically riskier, therefore they pay more.


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“Of course, by revealing this, there’s a chance we’re subverting future risk charts, as some riskier drivers may now do it earlier.

“But even if we did move the market so much, it’d likely take years to factor through, and we’ll keep redoing the analysis.”

Car insurance is something all drivers need but there are some surprising ways it can become invalid.

With Christmas just around the corner, some people will choose to keep their presents hidden in their car.

However, providers could refuse to pay out for gifts stolen from vehicles that were left open or unlocked.

Insurers may also refuse to cover expensive items as they have personal belong limits of just a couple of hundred pounds.

Not only would some drivers be left without compensation, they could have their policies axed for not taking the appropriate care of a vehicle.

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