Car insurance policies may be cheaper elsewhere so shopping around before your renewal date is always a good idea. Shopping around for a new policy could help you secure an agreement with better terms which may suit your lifestyle in a massive win for road users. This should be done as soon as possible so motorists can spend time looking at the best deals on offer before settling on a new agreement.
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Car insurance: How much money can I save by switching?
According to Compare the Market data, road users can save an average of £506.97 by changing their car insurance company three weeks before their renewal.
The Financial Conduct Authority revealed 11 percent of renewed car insurance agreements were more expensive than taking out a new policy.
Agreements are commonly sold at discounted rates to encourage new customers to join before bills are gradually increased to their full rates.
This makes it look like loyal customers are hit with price increases if they continue to remain with the same provider.
Car insurance: When is the best time to switch?
By switching with a few weeks left before your contract ends, motorists could secure an agreement for an average of just £445.16.
Switching your provider on the day your current agreement runs out could still see motorists save money but the total reductions will be smaller.
You may still be able to secure cheaper prices on the day your current agreement ends but total savings are likely to be dramatically smaller.
CompareTheMarket says policies purchased on the day your agreement ends are likely to cost £952.13 per year.
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How to find a better car insurance policy
Price comparison sites are a great way to analyse which policies are more cost-effective than others for your particular needs.
According to Which? motorists could use a different policy as leverage to reduce the cost of their current insurance price.
Companies do not want to lose customers and some will reduce prices or offer better terms if you explain you are considering leaving.
According to USwitch, specialist car insurance providers may be able to sort you out a better deal if your car is considered more high risk.
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Powerful or modified cars will often be hit with expensive premiums at traditional car insurance outlets as these vehicles are at a higher risk of having a crash.
Switching to a specialist provider would help reduce prices as they are used to dealing with vehicles built to high specifications.
Benefits of switching car insurance policies
The Money Advice Service warns road users that the cheapest policy is not necessarily the best policy for every motorist.
Each policy will have various clauses which could risk invalidating your agreement if they are broken.
Many motorists who are used to their current policy may forget to check whether these terms are included in a new agreement which could lead to devastating consequences.
Popular exceptions include leaving your keys in the ignition or putting the wrong fuel inside a car.
Road users are urged to check their policies thoroughly before signing up to an agreement as they could be caught out unfairly.
Breaking the contract could see your companies invalidate your policy which will see motorists forced to pay for their own repair bills.
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