Money Expert > Car Insurance > When is the best time to renew your car insurance?
When is the best time to renew your car insurance?
Last updated: 28/01/2025 | Estimated Reading Time: 7 minutes
Money Expert > Car Insurance > When is the best time to renew your car insurance?
Last updated: 28/01/2025 | Estimated Reading Time: 7 minutes
Most car insurance policies come with an auto-renew feature, in which your insurance will automatically renew for another year if you don’t cancel or alter it. Auto-renewal is convenient, so it can be tempting to sit back and let your car insurance auto-renew. But did you know that auto-renewing could result in higher costs? For example, your new-customer benefits may expire, leaving you paying a higher ongoing premium, or you may be charged hidden admin costs.
Rather than relying on auto-renewal, it’s a good idea to be strategic about the timing of your car insurance renewal. The timing can significantly impact the premiums you’ll pay and the promotions you’re eligible for.
Here, we’ll guide you through everything you need to know about car insurance renewal timing, so you can pick the perfect premium at exactly the right time.
Timing really can make a difference when it comes to car insurance renewal. Car insurance prices fluctuate throughout the year due to a number of factors. Some of those factors are general (for example, many insurers adjust their prices seasonally), while others are more personal to each customer.
Here are just a few reasons why you should carefully consider the timing of renewal when renewing (or switching) your car insurance:
There is no consensus regarding the ‘sweet spot’ for car insurance renewal. But, most experts advise shopping for renewal quotes 3 to 6 weeks before your renewal date. Renewing within this timeframe is a good idea for a number of reasons:
However, the best time to renew can vary based on factors like interest rates and your personal circumstances. To get the best possible deal, thoroughly compare car insurance quotes through a site like Money Expert.
While 3 to 6 weeks prior to your insurance expiring is generally the cheapest time to renew, there are other factors that can affect the best renewal date for you. Here are some factors to take into account:
Points on your licence or a no-claims discount can impact costs. If you have points on your licence due to expire on a certain date, you may find that renewal quotes will be cheaper once the points have gone. Similarly, if you wait long enough to gain a no-claims discount you may find that your renewal quote is cheaper than it would be if you had renewed sooner.
The type of car insurance policy you have can affect the best time to renew. For example, if you have a telematics-based policy (which adjusts your premiums based on your driving behaviour), timing may have less effect on your premiums than it would for fixed-rate policies.
If your current insurance comes with an early cancellation fee, it may be better to wait until that policy expires. This way, you can save money on cancellation fees and get a better deal from a new insurance provider.
Significant changes in the way you use your vehicle can affect the best time to renew in various ways. For example, if you are about to reduce your vehicle usage, you may get a better deal if you renew your car insurance after cutting your mileage, not before. When you compare quotes, you may find insurers that offer reduced rates for lower average mileage.
Things like moving house, changing jobs, and getting a divorce can make a difference to your car insurance premiums. For instance, moving to an area with higher vehicle theft rates could increase costs. As such, insurers might charge a higher price after you move than they would if you renew beforehand.
Driving habits can change according to the season. People might drive more during the holidays, or less during wintry conditions. As such, car insurance providers may change their prices on a seasonal basis. Compare quotes regularly to find seasonal reductions that work for you.
There are benefits to staying with your current insurer. Some car insurance providers have loyalty schemes and may reward you with lower premiums if you keep your current policy. If you haven't made a claim your current insurer may also offer a no-claims discount.
So, rather than blindly switching to a new policy when your renewal date approaches, check your current policy to see if there are renewal benefits.
At the same time, you shouldn't sit back and let your policy automatically renew. Auto-renewal can come with surprise costs such as a rise in interest or the loss of previous discounts. For example, some car insurance companies offer lower rates for new customers. Once you’re no longer a new customer, you’ll lose that discount and find yourself with a higher premium than before.
To find the cheapest time to renew your car insurance policy, it's a good idea to compare quotes regularly. This will help you spot seasonal fluctuations in prices and give you a good idea of the kinds of discounts and penalties that might apply to you as your renewal date approaches.
You can increase your chances of finding the best car insurance policy for your circumstances by avoiding these common renewal pitfalls:
Whether you want a brand new quote or to browse what's available before renewal, Money Expert is here for you. No matter when you choose to renew your car insurance policy, Money Expert can quickly find hundreds of suitable quotes, allowing you to compare quotes and make the best-informed decision about your car insurance renewal.
With Money Expert, you can easily compare car insurance quotes whenever you want. Frequent comparison helps you spot discounts and seasonal price changes and grab the best deal for you without the last-minute rush.