Martin Lewis explains car insurance ‘trick’ which could save drivers hundreds of pounds
Martin Lewis gives advice on when to renew car insurance
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Martin Lewis said renewing up to three weeks before would see drivers secure lower prices but costs would be at their lowest at exactly 21 days. He said the simple trick was “amazing” and urged all road users to make sure they check it out before settling elsewhere.
He was responding to a couple who praised Mr Lewis for helping them save on their agreement when he first made the tips earlier in the series.
Speaking on the show, Jessica claimed she had saved over £200 on her agreement by switching agreements with exactly 21 days left on her policy.
She said: “I watched the episode a couple of months ago and I took Martin’s solid advice on looking three weeks before my renewal date.
I did it to the exact date and saved just over £210.”
Martin Lewis replied: “It’s amazing that trick isn’t it.
“Twenty-one days before renewal car insurance prices are at their sweet spot when you’re checking quotes elsewhere. Do that.”
Jessica is not the only person to praise Mr Lewis regarding car insurance savings.
Earlier in the series, Matthew from Blackpool claimed he had saved over £400 on his agreement by renewing a few weeks before their policy was due to expire.
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Compare the Market confirmed drivers were likely to save the most money on car insurance agreements by switching three weeks before the cover will end.
They say drivers between the ages of 25 and 29 could save an average of £443 by switching 21 days before their renewal.
Meanwhile, drivers aged between 30 and 39 were likely to save £367 renewing 21 days early with those between 40 and 49 saving £289 on cover.
Confused.com also confirmed premiums are usually at their cheapest between 21 and 30 days before a policy expires.
Speaking back in February, Mr Lewis said prices were cheaper three weeks before based simply on a company’s overall perceived risk.
He said drivers who leave it to the last minute will be considered “a more risky person” which could make someone more likely to claim on an agreement.
He said: “This is not about your renewal price, it’s the cheapest price you’ll get on a comparison on the days before you renew.
“If you try and get a quote 30 days before the price is pretty high then it drops very rapidly.
The sweet spot is around 21 days but anything three or four weeks.
“Then it starts to go up and up and up until we are talking about renewing at the last moment which is nearly twice the cost.
“You’re saying ‘that makes no sense’, well, there is a reason.
“Insurance pricing is based on risk and if you are the type of person who leaves it to the last minute their risk charts show you’re a more risky person so they will charge you more.
“So play their risk odds against them and renew earlier in that sweet spot of three to four weeks and you can save money.”
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