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Recently, drivers have been hit by exorbitant increases in the value of car insurance, with some paying almost 50% more than they did a year ago, bringing the average cost of car insurance to more than £800 a year. Inflation and rising claims contributed to those sharp increases.
Drivers over 80 have been hit hardest by the highest premiums over the past year, with a 27% price increase, according to Compare the Market. This is due to the combination of peak inflation and an increase in the cost of claims filed. through drivers with insurers.
But while there are ways to collect car insurance premiums, such as opting for the right coverage, protecting your no-claim bonus, or changing the title of your project, you can save a lot of extra dollars if you choose the right day to purchase your car insurance. coverage.
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Tom Banks, auto insurance expert at Go. Compare, said, “Although many of us know the importance of buying groceries for our auto insurance, we’re less likely to be aware of how the value can catch up depending on when you shop. To get the most bang for your buck, we recommend that you write down your renewal date and start shopping for your car insurance well in advance.
Here’s how to choose the most productive day to buy your auto insurance premium.
The cheapest day to buy your car insurance is 26 days before your renewal date, according to Go. Compare’s research. This can cost around £200.
Here’s how much you can charge your car insurance premium on the day of booking, on the comparison site.
You may expect to pay a higher value the later you buy your car insurance premium, but buying a few days later also makes a difference.
Taking out your car insurance 24 days before your renewal date means you’ll pay £10 more than if you had taken it out 26 days earlier. If you book 20 days before renewal, you’ll be charged £14 more compared to a purchase. There are 26 days left, and if you leave it with 10 days to go you end up paying almost €40 more.
Leave your car insurance premium on the day of renewal and you could end up shelling out more than £500 (55% more) and miss out on a saving of around £200.
While it’s dangerous to wait for a renewal, it’s just as bad to buy it too early. Go. Compare says you can buy car insurance premiums up to 29 days before renewal, but the 29th day can end. Paying £383, which is £16 more than you would pay 26 days before the renewal date.
So, 26 days is the best time, and maybe a note to jot down in your journal. But it’s vital to know that there are other points that come into play when shopping for your car insurance premium, and there are other tactics to keep prices down as well.
There are several tactics for collecting your car insurance premium.
Buy an annual policy. If you can pay off your policy all at once, you deserve to do so. The other option is to pay your premium monthly, but this means that interest will be added to your monthly payments, which means you’ll end up paying. more. According to MoneySupermarket, you can save up to £225 on average by paying annually instead of monthly.
Build a bond that isn’t a disaster
If you’re wondering what the price of your no-claims bonus is, it’s pretty appreciable. The more years you go without filing a claim on your policy, your no-claim premiums will add up and take cash off your premium, in a different way, known as a no-claim discount. The professional framework for the motor insurance industry, the Association of British Insurers (ABI), says that a loss-free year can save you up to 30%. Relief can double to 60% with five years of no claims.
Be when you’re a designated driver
Being a driving force called means adding to someone else’s insurance policy. This means that you too can drive the vehicle and risk a twist of fate or damage to the vehicle. However, any claims about the policy would be on the call. of the main motive force.
Young drivers or anyone just starting out can expect high car insurance premiums because you’re new to the road and may not have any claims. In this case, it’s a good idea to include an experienced driver as a driver. “Designated engine”. Connor Campbell, an expert at Independent Advisor Car Insurance, said: “Adding a parent with more driving experience as a designated driver to their policy will allow them to gain advantages from cheaper premiums. “But if it’s your contract and your car, it’s vital to increase the main driving force again, because this is the only way to accumulate your no-claim bonus. As a designated driving force, it does not receive any complaints.
Vaishali has a background in private finance and a hobby for helping other people manage their finances. As a member of MoneyWeek, Vaishali covers the latest news, trends, and information on real estate, savings, and ISAs.
He has also signed with the US private financiers Kiplinger. com and Ideal Home, GoodTo, inews, The Week and Leicester Mercury.
Prior to joining MoneyWeek, Vaishali worked in marketing and copywriting for small businesses. Away from his office, Vaishali enjoys traveling, socializing, and cooking his favorite dishes.