Motorists could be penalised when trying to find last-minute insurance deal
Switching right at the end of a policy’s term isn’t always the cheapest option, new data finds
UK motorists could be losing out on insurance savings by trying to switch policies at the last minute, according to new data.
Insurance prices can be up to £338 cheaper by switching policies three weeks before the current policy ends compared to the day of renewal.
Despite this, 33 per cent of drivers wait until the day before or the day of a policy’s end before switching provider in the belief that it will result in a better deal.
Research has discovered that the amount drivers could pay for insurance varies greatly depending on the time they switch. It could mean that a policy could cost significantly more towards the end of a term. By the time an insurance policy ends, the price available sits at an average of £775 compared to £436 if the switch was made three weeks prior.
The cost gradually rises as time moves on, with an average of £472 two weeks before a policy’s end, £547 one week before and £660 the day it expires and automatically renews.
Despite the savings that switching early could bring, the highest number of comparison searches on comparedthemarket.com, who made the study, came on the day before or the day of a policy ending – accounting for 35 per cent of all the enquiries.
Dan Hutson, comparethemarket.com head of motor insurance, said: “Very few people get ahead of the game when it comes to reviewing their insurance policies, but these figures show there is a big financial incentive in considering the time that you switch. Shopping around remains by far the best way to save money on insurance, but these statistics show that this can be optimised by timing it correctly.”
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