Car insurance: Drivers can make ‘very significant savings’ by doing this one thing

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Car insurance experts say drivers should simply check their renewal date and then secure a better deal to make top savings. The current financial situation may well be a great time to make the switch with many insurers reducing their current premiums.

Firms have also been forced to scrap their cancellation fees amid the pandemic meaning drivers could make a switch without facing any additional charges.

Lee Griffin, CEO of insurance experts Go Compare, said one of the best ways to reduce expenditure is to secure a better deal.

Speaking to Express.co.uk, he said: “For those people who are still working, using their cars and able to pay premiums, the advice is to check your insurance renewal date.

One way to reduce outgoings is to shop around for a better insurance deal.

“Many insurers have reduced their new business premiums, therefore there could be some very significant savings for customers who shop around and switch at renewal.”

The Financial Conduct Authority (FCA) says firms who intend to make changes to a policy before a renewal date must make any alterations clear.

The FCA says firms must act honestly, fairly and professionally for the best interests of the customer.

Shopping around has always been considered a simple way to save money on an agreement to ensure customers avoid “price walking”.

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This is when firms incrementally increase your overall payments each year to bring your total charges in line with what the agreement is actually valued at.

Usually, new customers receive a policy at a heavily discounted rate to get them to sign up which prompts slight rises over the next few years.

Experts at Confused.com say that the best time to renew an agreement is between 21 and 340 days before an agreement ends.

They say this is when agreements are usually at their cheapest with some firms taking advantage of those who are days away from an agreement running out, by upping quotes.

Experts at Confused.com say that it is worth shopping around, with savings of up to £276 on average available for those who switch.

Analysis from the firm has revealed one in six drivers who made the switch to a new agreement could find a new policy more than £100 cheaper.

Louise O’Shea, Confused.com CEO, has previously warned that not shopping around could be “costly” for road users.

She said it was likely there would be another insurer who could offer a “better price” compared to what your current provider is charging.

She said: “Automatically renewing with your insurer might seem like the easiest, stress-free option, but it could be costly.

“Even if your renewal price is cheaper, or the same, it’s likely there will be another insurer out there willing to offer a better price.

“Please don’t pay more than you have to – take a few minutes to check your renewal letter and get a cheaper price because now, more than ever, it’s so important to shop around.”

Mr Griffin told Express.co.uk: “For many people, running a car is essential to their everyday life for commuting to work, shopping or, supporting family and friends.

“COVID is having a significant impact on motorists – affecting everything from the availability of serving and MOT testing to obtaining or renewing a driving licence.”

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