Time is running out if you want to save money and switch insurers before a new law takes effect.
Price analysis website Comparethemarket.com has studied UK car insurance premiums over the last nine years revealing drivers are losing up to £350 by not switching their insurance at the optimum time.
Significant savings can be made based on the number of days left on your policy and the time of year during which you switch.
The best time to switch your car insurance policy:
- Switching approx. 3 weeks before your policy ends will save you on average £306 – yet one in three switch on the day their policy expires
- December is the most expensive time switch, averaging £703
- If your insurance is set to run out in 2021, switch before the end of the year – the Financial Conduct Authority (FCA) is introducing new pricing regulations in January 2022 that prevent insurers from offering discounts exclusively to new customers.
December has consistently been the most expensive month, with an average premium of £703. This is £50 higher than the average premium for the rest of the year and £64 more than March – typically the cheapest month for car insurance.
However, while December has been the most expensive month, switching in January or later next year may be even more expensive. The Financial Conduct Authority is introducing new pricing regulations in January 2022 that prevent insurers from offering discounts exclusively to new customers.
These rules benefit loyal customers but could mean insurance prices no longer vary as much by time of year and insurers may choose to increase premiums for new customers when switching from January to make up the difference. Shopping around online to view potential savings ahead of renewal could help prevent households from paying over the odds.