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

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.
 

Key points

  • The best time to renew your car insurance depends on many factors, including interest rates and your own personal circumstances.
  • It is usually a good idea to renew your car insurance in advance, ideally at least a month before your renewal date.
  • Auto-renewal is convenient, but it can result in extra costs.
  • Shopping around is the best way to get the very best car insurance deal for you, whenever you decide to renew.

In This Guide:

Why does timing matter for car insurance?

A woman next to a car holding a pen and notepad, symbolising the importance of timing when it comes to car insurance.

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:

  • Quotes vary depending on how close you are to renewal. Some insurers increase premiums as renewal draws closer, as they know you’re running out of time and are more likely to purchase.
  • Seasonal factors can affect renewal costs. For instance, insurers may expect higher driving during summer holidays or less in winter due to harsher conditions, causing prices to vary.
  • Automatic renewal with your existing car insurance provider may bring higher rates. This can happen due to hidden costs, expiring new customer deals, changes to interest rates, admin fees, policy adjustments, and more.
  • Discounts and offers become available at different times. For example, some insurers offer start-of-year and end-of-year deals.
  • Changes in circumstances may affect your premium. If you have a big change (such as moving house) upcoming, it may be better to renew your car insurance policy before, rather than after, this change.

When is the best time to renew or change 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:

  • It gives you plenty of time to compare car insurance quotes.
  • It ensures that you avoid auto-renewal.
  • It avoids any coverage gaps.
  • It gives you plenty of time to get all the necessary documentation together.
  • It lets you take advantage of early renewal discounts.

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.

What factors might influence the best time to renew your car insurance?

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:

Driving history

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.

Policy type

A hand of a person filling in a car insurance policy, highlighting key factors such as the policy type for choosing the best time to renew car insurance.

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.

Changes in vehicle usage

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.

Life events

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.

Seasonal factors

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.

Should you try and stay with the same insurer?

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.

Pitfalls to avoid when renewing your car insurance

You can increase your chances of finding the best car insurance policy for your circumstances by avoiding these common renewal pitfalls:

  • Not comparing enough quotes. There are hundreds of car insurers out there, and they all have different advantages and disadvantages. To find the best car insurance prices and the best time to renew, you should regularly compare as many quotes as you can.
  • Auto-renewing. We’ve mentioned this above, but it's worth repeating. If you let your policy auto-renew, you may find yourself hit with an unexpected price hike due to things like admin fees and loss of any new-customer discounts.
  • Not reading policy terms and conditions. It's always a good idea to read the small print. Make sure that you read through each potential policy thoroughly, to check that you're not paying for anything you don't need or missing out on anything you do.
  • Renewing at the wrong time. As we've covered above, you can sometimes get a better price by timing your renewal carefully. Leaving renewal to the last minute is rarely a good idea.

Whenever you decide to renew your car insurance, find the perfect policy for you with Money Expert

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.

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