The exact day to renew your car insurance with the cheapest quote
Martin Lewis has done it again. From telling us how to save money on our vacations to our energy bills, the financial genius has helped millions of people keep more of their money.
And his latest tidbit could be vital in helping people manage their pennies when it comes to getting car insurance.
After sorting out the MOT, this is perhaps one of the most annoying jobs drivers have to deal with, and it can also be one of the most expensive.
However, the money-saving expert says there’s a simple trick that could help you save hundreds of dollars every year.
But according to MSE, the best day to sort out your cover is 23 days before, as it may see your policy cut in half. Which isn’t too bad, is it?
The advice site analyzed more than 70 million quotes from comparison sites to find that sweet spot.
It should be noted, however, that not all insurance companies are listed on comparison sites, so you will need to contact them directly if you want a specific quote which is not available.
And if you miss that particular day, don’t worry, the company also found that the quotes were significantly cheaper a few days each side.
Speaking earlier about the issue, Martin explained that it’s not just about renewing, it’s about the insurance company creating an image of the customer.
Martin said, “It’s all based on actuarial risk.”
This is when insurers compare the number of people who have claimed and the information they put on their claims.
So it’s based on what the majority of other pilots have done in the past.
Another novel idea is to choose comprehensive coverage as opposed to a third party fire and theft insurance policy.
Although it may not seem like it at first glance, it can often turn out to be cheaper because the suppliers see you as a lower risk. Again, this is purely based on numbers.
He also said that: “Adding an extra driver can reduce your costs – it’s especially helpful for young drivers.”
However, you have to be careful NOT to put them as the main mover, because that’s called ‘fronting’ and is illegal.
His final pearl of wisdom is comparison sites: use as many as you can. Indeed, the insurers have agreements with the sites, which means that they can cost more or less depending on which one you use.
“I use at least three,” Martin said.