Many drivers could be paying double for their car insurance because of one common mistake. Here’s the little tip you need to be aware of when renewing your car insurance premium to avoid paying more than you need to.
The reality is that many car insurers use tactics that target drivers who are leaving it to the last minute to buy their cover. These tactics could actually lead to drivers paying hundreds of pounds more than necessary to insure their vehicles on specific days. An investigation by Money Mail found that some insurers appear to be using similar tactics on airlines to ramp up prices at the last minute. Ultimately, motorists taking out their car insurance on the day it is actually due could end up paying £200 more than if they had acted 24 hours earlier.
In one case, the investigation found that drivers renewing their Churchill premium could save £225 if they bought it 21 days in advance. CompareTheMarket suggests that renewing your premium 21 days before its expiry date is typically the time you can attract the lowest premiums.
Customers leaving the renewal of their premium to the last minute can be perceived as careless or disorganised by insurers. Interestingly, however, a driver that tries to renew their premium on the very day they receive their renewal letter can be perceived as excessively cautious, which can also make the premium rise.
Many people are unaware that they are actually being financially penalised for purchasing their insurance at the last minute. Motor insurance is a fiercely competitive market. It is recommended that you shop around to ensure you get the perfect deal for your needs, and the perfect deal will not necessarily be the cheapest. But there is no point in getting charged more than necessary just because an insurance company chooses to penalise you for leaving it late to purchase your premium.
The statistics gathered by insurance companies suggests that people who obtain their quote a few weeks before the renewal date are less likely to make a claim. So don’t fall prey to insurance companies following the statistics – if you want to keep your premium as low as possible, consider buying it around 21 days before your renewal date.