Why February is the best month to renew car cover
- You could save up to £100 than if you renew at other times of the year
Motorists receive the best value car insurance if they renew this month – paying almost £100 less than if they were to renew two months earlier, according to Compare The Market.
The price comparison website has discovered that premiums are on average £37 a year cheaper in February than in a typical month.
A key reason is that February is the busiest month for renewals, with prices lower in a competitive market fighting it out for the custom of 20 million car owners.
February is the best time to renew your car insurance according to Compare The Market
The average fully comprehensive deal costs £629 in the next six days – but over the rest of the year it is £666. And in the lull over Christmas, when insurance is usually the last thing on anyone’s mind, it costs an average of £725.
The long cold nights of February are when most people sit down to sort out their finances and go hunting for cheaper car cover.
Dan Hutson, head of motoring at Compare The Market, says: ‘The difference between taking out your cover in February compared to December is almost £100.
It reveals not only does loyalty not pay – but shopping around should also be done right now.’
Those motorists who stick with the same insurance company year after year and do not bother to look for a better deal pay on average £270 more than they need to, according to the website.
Many insurers put their customers on automatic renewal – though they should tell customers when they do so.
If you do nothing you are likely to be out of pocket.
But though February might be the cheapest month to take out cover be wary of breaking a contract you are already on.
And of course, delaying taking out cover and driving without insurance is a crime. There could be an early cancellation fee.
Motor and home insurance policyholders would save a total of £1.2billion a year if they shopped around, according to the Financial Conduct Authority.
The watchdog has found that the best deals are usually offered to entice new customers, while longstanding clients often get the worst price.