When is the best time to renew my car insurance?
Key takeaways
The best time to renew is 3-4 weeks before your car insurance is due for renewal
Use our renewal savings tool to find out how much you could save by adjusting when you renew each year.
How to use the tool
Just pop in a couple of quick details – your age and how many weeks before your renewal date you usually buy your car insurance.
We’ll show you how much you could save right now, as well as the potential total lifetime savings if you switch at the best time every year, rather than just letting your policy auto renew.
When is the cheapest time to renew my car insurance?
Generally, the best time to shop around is around 3-4 weeks before your car insurance is due for renewal, as this is when you can find some of the best deals. The closer you leave it to your renewal date, the less you could save so shopping around early could really pay off.
According to our latest data, the cheapest day to renew your car insurance is likely to be 28
Generally, renewing early is cheaper: you will find better prices if you look at renewing between 20-29 days before your new policy starts. But don't go any earlier - average premiums climb back up for those renewing 30+ days out.
How does car insurance renewal work?
Renewing your car insurance policy is pretty straightforward - you’ll usually get a notification from your insurer around 28 days before your policy is due to be renewed. This gives you enough time to review or even negotiate the terms of cover, or compare providers in order to get a better deal.
If your policy is set to auto-renew and you’re happy to continue with your cover, you won’t need to do anything, but automatic renewal might mean you miss out on lower premiums.
If you don't want to renew your policy with your current provider, you’ll need to get in touch with them to let them know. There shouldn't be any cancellation fees for not renewing a policy.
Why does the cost of car insurance often increase at renewal?
Insurance prices are affected by wider events and circumstances, they can factor in things like changes in regulations and laws, advances in car technology, inflation and insurance company profit forecasts.
Many car insurers also used to offer better deals to new customers, while putting up prices for existing customers at each autorenewal. But a 2022 ruling from the Financial Conduct Authority (FCA) banned this practice.
Additionally, your car insurance may increase because:
You’ve made a claim on your policy: If you’ve made a claim on your car insurance, your risk profile increases - which means insurers see you as a higher risk in the future. This generally means you’ll pay more for cover
Your circumstances have changed: If you’ve modified your car, added a new driver, changed your level of cover, added more optional extras, or even got a new job or moved to a new area, this can affect your renewal price
Can I save money by switching car insurance companies?
Yes, you can often save money on your car insurance premiums if you compare providers and quotes and switch to a different insurer around 28 days before you’re due for renewal.
MoneySuperMarket can do the work for you. We compare quotes from 185
Is it cheaper to buy car insurance in advance?
Yes, you’ll often be able to make substantial savings if you buy your car insurance well in advance of its renewal date. The reason is pretty simple - insurers will see you as more organised, and they say there is a direct link between those who renew earlier and those who make fewer claims.
Number of days before the policy renewal date | Average premium |
|---|---|
0 - renewing on the day your insurance ends | £683 |
1 - renewing the day before | £639 |
10 | £475 |
20 | £420 |
25 | £384 |
26 | £379 |
27 | £380 |
28 | £368 |
29 | £442 |
30 | £692 |
What else can I do to cut the cost of car insurance?
There are a few other ways you can try to reduce the cost of your car insurance when it comes to taking out new cover:
Increase your voluntary excess
Paying more on top of your compulsory excess can reduce your premiums. It indicates to insurers that you’re less likely to make smaller claims on your policy.
Pay annually
Paying your car insurance premiums in an annual lump sum works out cheaper than spreading the cost over 12 months.
Build your no-claims discount
Most insurers offer discounts if you haven't made a recent car insurance claim, and these no-claims bonuses get bigger as your number of claim-free years increases.
Just be sure to inform your insurer about any damage or incidents that happen with the car, even if you're not claiming for them. Not doing this can invalidate your insurance.
Consider telematics
Young and high-risk drivers could save on premiums by taking out a telematics policy, and once you have a black box you can earn cheaper cover by demonstrating safe driving habits.
Reduce your mileage
Driving fewer miles puts you at less risk of being involved in a road accident, so if you can give a lower estimated mileage next time you take out cover, you could get cheaper premiums.
Take a driving course
Courses like Pass Plus will make you a better driver, and can also demonstrate that you’re committed to safe driving, so insurers might give you a discount.
Bundle your insurances
If you combine your car insurance with other policies, like home insurance, from the same insurer this can sometimes unlock discounts.
📢 Did you know? Someone who drives 10,000 miles a year pays on average 3%
^ more than someone who drives 2,000 miles.
How do I compare car insurance quotes?
If your car insurance is coming up for renewal, starting comparing car insurance quotes early with MoneySuperMarket to find the best and most affordable options.
Just tell us a little about yourself, your car and your driving history, and we’ll search the market for quotes that meet your requirements. You should be able to save on your premiums and could find cost savings of up to £514
Author
Sara Newell
Commercial Director
Sara Newell is the Commercial Director for Motor & Home Insurance at MoneySuperMarket. With almost 20 years of experience in insurance, Sara has built a reputation as a results-driven leader who...
Reviewer
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
