Changes to car insurance rules could make switching coverage more expensive in January 2022.
However, if you renew early, you may be able to save money.
According to recent research on auto insurance renewal pricing, now is the optimum time for drivers to switch coverage. Putting it off till the last minute is sure to cost more, but being prepared ahead of time could save you a lot of money.
According to a study by Compare the Market, switching 20 days before the renewal date can save an average of £306.
A average car insurance premium would cost £401 if purchased 20 days before renewal. The mentioned price will continue to grow as time passes and the renewal date approaches. Switching a policy on the renewal date, for example, may result in a bill of £707 instead.
Drivers switching on their renewal date accounted for 32% of all inquiries, according to Compare the Market.
More over half (58%) are slightly more prepared, planning to switch a week before their contract expires.
Changing a week in advance, on the other hand, might cost an average of £506. Drivers lose out on a potential £105 savings as a result of this. Those whose insurance policies are about to expire will most likely pay extra.
The month of December is usually the most expensive for auto insurance. In December, a typical policy would cost £703 on average. Instead, it would cost £639 if taken out in March.
However, Compare the Market advises against waiting until January 2022.
The Financial Conduct Authority (FCA) has implemented new pricing laws that would prevent insurers from offering bigger discounts to new clients.
Switching customers’ premiums may be higher next month, as insurers may raise expenses to make up the difference.
