When is the best time to renew my car insurance?
Key takeaways
Letting your policy auto-renew can be convenient, but may mean paying more than you need to
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 much could I save by renewing my car insurance early?
Use our car insurance renewal tool to see how much you could save right now, as well as the potential total lifetime savings if you switch at the best time in every future year you keep driving, rather than just letting your car insurance policy auto renew.
To use the tool, just add your age and how many weeks before your renewal date you usually buy your car insurance.
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 insurer data shows that drivers who renew earlier tend to make fewer claims, and they factor this risk profiling into their pricing.
Number of days before the policy renewal date | Average premium |
|---|---|
0 - renewing on the day your insurance ends | £704 |
1 - renewing the day before | £655 |
10 | £472 |
20 | £461 |
25 | £380 |
26 | £407 |
27 | £424 |
28 | £388 |
29 | £467 |
30 | £399 |
When is the cheapest time to renew my car insurance?
The cheapest day to renew your car insurance is 25
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.
The closer you leave it to your renewal date, the less you could save so shopping around early could really pay off. Insurers tend to charge more for last-minute renewals, as drivers who leave it late are often seen as higher risk.
How does car insurance renewal work?
Most car insurance policies are set up to auto-renew unless you tell your insurer you wish to cancel or switch your cover. If your policy auto-renews, you won’t need to do anything to maintain your cover. Your insurer will take payment automatically or send you a bill.
Car insurers can increase the price you pay at each auto-renewal, but they must inform you of what the new price will be. Generally, you'll be notified by email or post around 28 days before your policy is due to be renewed.
Automatic renewal is convenient and helps prevent you being left uninsured, which is important as driving without car insurance is illegal in the UK. However, it can mean you miss out on lower premiums. It's usually worth taking the time to review or even negotiate the terms of your car insurance cover each year, and compare it with other providers to see if you could get a better deal.
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 before the new policy starts. There shouldn't be any cancellation fees for not renewing a policy.
Why does the cost of car insurance often increase at renewal?
1. Changes in the car insurance market
Insurance prices factor in things like changes in regulations and laws, claims rates, advances in car technology, inflation (prices going up), and insurance company profit forecasts. Over the last decade or so, several of these factors have increased car insurers' costs, which they have passed on to customers.
Specifically, the UK has experienced a bout of higher inflation, which makes it more expensive to repair and replace cars. Advances in car technology have also made cars more expensive to repair, and at the same time there has been a sharp increase in the number and severity of car insurance claims. Together, these factors mean the average car insurance quote increased 102.5%
2. Changes to your personal circumstances
On a personal level, your car insurance price may also increase if:
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
Do car insurance companies offer better prices to new customers?
Not anymore. Many car insurers used to offer better deals to new customers, while putting up prices for existing customers at each auto-renewal. But a 2022 ruling from the Financial Conduct Authority (FCA) banned this practice.
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
Switching providers in advance of your renewal date is usually simple and fee-free, even if you’ve been with your current insurer for years. If you decide to switch, all you need to do is tell your current insurer you don’t want the policy to auto-renew and make sure your new cover starts as soon as the old one ends.
💡 Top tip: Even if you don’t want to switch, finding cheaper quotes can sometimes be used to negotiate a lower renewal price with your current insurer.
Can I switch my car insurance policy after it has auto-renewed?
Yes, you can usually cancel your car insurance even after it has auto-renewed, but most insurers charge an administration fee for cancelling.
Fees are often lower or non-existent during the 14-day cooling-off period. This cooling-off period is set by UK consumer law and starts when your new policy begins (or when you receive your policy documents if that’s later).
If you cancel, you’ll normally receive a pro-rata refund for the unused part of your policy, minus any fees and the cost of cover for the days you were insured under the policy. The exception is if you’ve already made a claim, in which case you won't receive a refund.
If you’re switching your car insurance mainly to save money, check that any cancellation fees don’t outweigh the savings from moving to a new policy.
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.
When you switch insurers, you can usually take your discount with you, but you may need to provide proof of your no-claims discount from your previous insurer. However, if you switch mid-policy you generally won’t earn that year of no-claims discount, as this only builds after completing a full 12-month policy.
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, start 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 £496
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...
