When is the best time to renew car insurance?

Getting the timing of your car insurance renewal right could help you save money. In this article, we’ll look at when could be the best time to renew your car insurance, explore wider factors that also influence your quote, and provide information on how to find the right deal for you.

When can you renew car insurance?

If you’ve chosen annual cover, your car insurance will last for a year.  Typically, around a month before this duration comes to an end, your provider will send a renewal notice. This will outline the price you’ll pay should you want to continue, as well as any changes to your cover.

At this point, you have a range of options:

• Accept the offer as it stands
• Cancel your cover altogether, should you no longer need insurance*
• Search for quotes from new insurance providers
• Challenge your existing insurer for another quote

If your aim is to get a better deal on your car insurance renewal quote, it’s well worth exploring your options with other car insurance providers and existing insurer. It’s also worth considering the date at which you shop around.

*If you plan on cancelling your cover, keep in mind that it is a legal requirement to have car insurance when driving on roads. You should only cancel your car insurance policy if you have alternative cover in place or no longer plan on driving.

When is the best time to renew your car insurance?

As we’ll explore below, car insurance companies assess your premium using a variety of criteria, some of which can fluctuate over time. This is why car insurance renewal prices can vary depending on when you get a quote, even if your personal circumstances or cover requirements stay the same.

While some of the criteria used to determine insurance quotes may be out of your control (such as local crime rates or the current cost of car parts). However, the time you choose to request a renewal quote is something you can influence, and it could make a difference to the cost of your premium.

Getting quotes too early may limit the deals available to you, as not all insurers are willing to share their best deals far in advance. However, leaving your decision to the last minute can put you in a position where you’re more pressured to accept a higher offer as you have less time to shop around.

How do insurance companies determine your premium?

From location to inflation, there are many factors that go into calculating the renewal quote on your car insurance. Being aware of these factors puts you in the best possible place to understand the price of your car insurance when getting a new quote:

Economic factors

Inflation and other financial pressures can influence car insurance prices. For example, as repair costs and other associated expenses rise, insurance companies may adjust their rates accordingly.

Your personal circumstances

Changes in your life, such as your age or your address, can influence car insurance quotes. For example, moving into an urban area could result in a higher insurance quote. due to increased traffic and risk of theft. Equally, reaching a milestone birthday can also impact your insurance price. Costs can start to increase at 70, which is the age when you must start renewing your driving licence every 3 years.  

Your No Claims Discount (NCD)

Accumulating a No Claims Discount can lower the cost of your car insurance. Each year you drive without making a claim, your discount will accumulate and can result in larger savings the more time passes. However, each provider will offer different No Claims Discounts. There might be a limit on how much you can save, and exact details may vary.

Your vehicle

The cost of your insurance will also be determined on a range of details that are specific to your vehicle, such as the make, model, and year it was manufactured. For example, as some cars get older, they become cheaper to insure as their value decreases. However, this may not be the case for cars that require more expensive repairs or parts as they age.

If you’d like to learn more about potential price increases on your policy, you can read our article: Why has my car insurance gone up?

How do you get the best deal when you renew your car insurance?

To secure the right deal during your car insurance renewal, consider these tips:

Provide accurate information

Inaccurate information could invalidate your car insurance and put any claims at risk of being denied. It also makes it harder to find a policy that aligns to your personal circumstances, and potentially make prices higher than they need to be.

Check your credit score

Maintaining a good credit score can help lower your insurance costs. Insurance providers will run their own credit check when putting together your quote. This helps them to confirm your identity and decide which payment options to offer. For example, those with poor credit may not be offered the option to pay in monthly instalments.

Assess quality alongside cost

Whilst getting a great price on your car insurance is one deciding factor, it’s important to ensure you maintain the level of cover you require. The cheapest policy might not be the right one for you, so make sure you understand what is and isn’t covered before you decide.

Try altering your car insurance details

Whether increasing your voluntary excess or reviewing the add-ons available, there are lots of amendments you can make to a policy when requesting a renewal quote that may impact the price. You could also consider removing a named driver that no longer uses the car or adding someone new who may use the car.

Monitor fluctuations in quote prices

As insurance premiums can change based on various factors, such as inflation and interest rates, it’s worth regularly checking quotes in the run up to your renewal to catch any drops in price.

When can I get the lowest quote price on my car insurance renewal?

It can be hard to pinpoint an exact date for renewing your car insurance. However, one thing you may want to avoid, is leaving your renewal until the last minute.

Drivers who get a quote too close to your renewal date can be viewed as higher risk by a provider. This means you’re more likely to receive a higher quote for your car insurance.

It’s worth noting that allowing your car insurance to auto-renew won’t be viewed as a last minute purchase by your provider. See below for more information on auto-renewal.

How do I check my car insurance expiry date?

The start and end date of your car insurance should be outlined on your policy documents. However, if you can’t find them, you can contact your insurance provider to confirm.

What is auto-renewal on car insurance?

If your policy is set to auto-renew at the end of its term, you’ll automatically be moved into a new policy with your existing car insurance provider without having to take any action. The provider will send renewal information ahead of time (typically the month before) and allow you to opt-out beforehand.

Auto-renewal is a standard practice used by many car insurance companies.  It offers convenience for consumers and helps reduce the number of uninsured drivers on the road that simply forget to renew their insurance on time. However, if you want to make sure you’re getting the best deal, it’s still worth shopping around. If you can’t find a better deal, allowing your car insurance to auto-renew won’t result in a worse deal with your current provider.

To see if your car insurance is set to auto-renew, you can check your policy documents or talk to your provider.

Summary

Understanding how car insurance quotes are determined can help get you a better price. The next time you need to renew your car insurance, consider these points:

• At around 30 days before your car insurance is due for renewal, you’ll get a notice from your current insurance provider.
• To find the right car insurance, try exploring your options with other car insurance providers and existing insurer.
• If you get a quote too close to your renewal date, this may result in higher prices.
• There are lifestyle choices you can make, which could bring down the cost of your car insurance, such as: driving less, parking in a secure location, and keeping a good credit score.

Additional information on how to cut the cost of your car insurance can be found in our article: How to get your car insurance down.

To learn more about finding car insurance through Age Co, click here.

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