Martin Lewis '30 second' rule to cut car insurance price in half

The Money Saving Expert founder revealed that drivers could save up to 50 per cent on their car insurance by finding this 'sweet spot'
Martin Lewis '30 second' rule to cut car insurance price in half

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The Money Saving Expert founder revealed that drivers could save up to 50 per cent on their car insurance by finding this 'sweet spot'Martin Lewis shared the tip on his BBC podcast (

Image: Publicity Picture)

Martin Lewis has given money-saving tips to drivers that could slash their car insurance costs by up to half. On his podcast, the Money Saving Expert founder revealed that an analysis of some 18 million insurance quotes had pinpointed the exact date that you'll get the best renewal price.

Martin urged listeners to take some time to mark this date in their calendars to secure quotes. He said on his BBC podcast: "You always want to be getting quotes around 26 days before you want the new policy to start. If it's anything between about 18 days and 28 days, you're pretty fine. 26 is the sweet spot."

For example, if your current policy is due to expire at the end of March, and you're looking at a fresh policy starting April 1, then March 6 emerges as the prime day to get a quote. Martin also made it clear that this strategy has nothing to do with the renewal quotes that car insurance providers automatically send out.

He explained: "Your insurance is going to send you a renewal note, it might be two weeks before, it might be a month before. That's your renewal, that price is irrelevant of when they send it you. It's about the price when you go and get quotes across the market. When you go on to a comparison site, that's the 26-day date."

The date is important as insurance prices are calculated based on averages of behavioural patterns and the likelihood of claims being made. This means that groups more likely to file a claim have to pay more. Martin explained: "What insurance data shows, is that people who renew on the last day are riskier. You're riskier if you are insuring at the last minute.

"You can sort of understand how that behavioural trend works. People who insure at the last minute haven't put that much practice in, and aren't as prepared, and aren't as organised as everyone else.

Martin Lewis (

Image:

Getty)

"That translates into actuarial risk and the amount of claims. What you have to do is shift yourself into the risk category where people are the lowest risk, and the lowest risk is around three to four weeks before renewal."

Martin went on to explain that this could result in a 50% difference in your insurance payment, adding that many individuals had reported hefty savings due to shopping around earlier. One person reported receiving their best quote price 21 days prior to their expiry date, at ÂŁ340. However, the same quote would have cost them ÂŁ637 the day before expiry.

Another motorist told the show that they only receive their quote from their provider 14 days before the expiry date. To this, Martin responded: "I don't need your excuses", indicating that this doesn't justify their lack of action.

He also had a tip to ensure you don't forget car insurance renewal date, advising: "Go and check when your car insurance renewal policy ends. Go and put in your diary 26 days before, or maybe four weeks before that so that so you give yourself a couple of days if you're busy, that it's time to go and get those quotes.

"Send yourself a delayed send email. That is my new organisational system, I do it all the time. I send myself emails and reminders."



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