Drivers can save £319 from their car insurance by ‘timing policy switches’ this winter
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Car insurance policyholders can make the savings by planning ahead rather than waiting until the day before their agreement ends to change policy. Compare the Market has found there are large fluctuations on the cost of insurance depending on when drivers switch.
Drivers are likely to be quoted policies valued at £776 per year if they switch the day before their current agreement ends.
However, securing a deal just three weeks before could see drivers pay just £459, highlighting how important planning can be to securing great desks.
Costs slowly creep up the closer drivers get to renewal date with policies valued at £493 two weeks before and £565 just a week before.
But Compare the Market warns thousands of drivers are missing out on the “significant savings”.
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It claims the highest number of comparisons for quotes on their site comes the day before their current agreement ends as motorists desperately search around for policies.
Dan Hutson, spokesperson for Compare the Market said drivers could save by shopping around but “timing policy switches” had a big outcome on overall prices.
He said: “The majority of people leave it until the very last minute to renew their policy, but our research shows that there is money to be saved through considering the time that you switch.
“Shopping around remains by far the best way to save money on insurance, but these statistics prove that this saving can be increased even further by timing policy switches correctly.”
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Further analysis from Compare the Market found the average premium in December over the last eight years has been higher than the average costs over the rest of the year.
Prices peaked in December before falling again in January meaning now would be a bad time to switch.
Last year, prices in December averaged out at just shy of £800 compared to just £700 over the course of the year.
December prices have been slightly higher than the overall average in every single year since 2012.
Compare the Market said that the wide fluctuations on costs shows there are large savings on offer throughout the year forroad users.
Dan Hutson said drivers should ”bear in mind” these price changes when considering purchasing a policy.
He added costs were higher in December as firms reacted to reduced demand for cover over the Christmas period.
Car insurance agreements are more popualr to buy in Janaury when people get on top of their finances so higher demand can lead to lowerr costs.
He said: “The cost of car insurance varies at different points of the year and this is something that people should bear in mind when looking to renew their policy.
“There are many reasons for this, including that the cost of a policy reflects the level of demand in the market at any given moment, along with a range of factors based on a person’s risk profile.
“In December, people may be thinking about car insurance less, and so some insurers could charge higher prices based on this reduced demand.
“The cost of car insurance then drops significantly in January as insurers compete to attract customers as they start to look at their bills after the Christmas break.”
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