When is the best time to renew car insurance?

Car insurance is usually one of the most expensive aspects of owning a car. However, as having at least third party car insurance is a legal requirement to drive a car on UK roads, it cannot be avoided.

What you can do though is try to find ways to make your premium lower and easier to manage. One of the ways you can do that is to renew your car insurance at the ideal time. We’ve done some research to find out when that might be.

What is car insurance renewal and how does it work?

Most car insurance policies offer annual cover, meaning they start on the date you choose, and expire exactly a year later.

Lately, more insurers have started offering rolling monthly contracts, but the majority still stick to an annual renewal date.

This means that, on the date your policy expires, you are no longer covered and driving your car on the road becomes illegal. You must either renew your policy before it expires, take out an alternative one or register your car as SORN (off the road).

When is the best time to renew car insurance?

There is no definitive answer to this, although most agree that renewing early can save you a lot of money.

A recent study found that renewing your car insurance at least 8 days before it expires can save you as much as 28%, while a separate study from 2019 found that renewing between 20 and 26 days before the expiry date can save you up to a whopping 40%.

Another thing to consider is that, rather than just automatically renewing with your existing provider, have a look around to see if someone else can offer you the same policy terms for a lower premium. Even if you’d rather stay with your insurer, you can use this information to negotiate a better deal.

How do you know when to renew your car insurance?

Your insurance company will likely email you with a reminder that you need to renew your policy a few weeks before its expiry date.

If you are enrolled onto auto-renewal, you will get a notice saying your policy will renew on the stated date and the new rate of your premium.

What is car insurance auto renewal?

In many cases, you will be enrolled onto the insurance company’s auto-renewal programme when you first take out your cover. This means your policy will continue with the same conditions as before, rather than expire on the date stated in your policy documents.

It’s best to opt out of this or switch it off before the end of your policy term, as you’ll often end up paying more for your policy if it renews automatically.

Note that if you cancel after your policy renews, you may have to pay a cancellation fee if you then decide to change providers, so make sure you do your research early.

How to renew your car insurance

You can usually renew your policy by contacting your insurer directly. The methods available vary by company, but most offer a customer service phone line and email address for customer queries.

In an increasingly digital world, many insurance companies now offer online portals or handy phone apps, where you can manage your policy. You should be able to renew through these services.

That said, consider shopping around for a better deal before you renew with your existing provider. That way, even if you don’t actually want to switch, you can use the prices you found to negotiate with your insurer.

Should you renew your car insurance early?

Yes, as stated above, renewing early can save you money.

Opinions vary on the exact date, but around 25 days before the policy’s expiry date seems to be the best bet. If that sounds a little too early for you, anything over 8 days early can also save you some cash.

How early can I renew my car insurance?

Your car insurance is affected by a variety of factors, and so your insurance company might not be able to price your renewal correctly if you try to renew too far in advance. Up to a month before the policy’s expiry date is recommended.

Frequently asked questions

• What should I expect at renewal time?

  Often, car insurance premiums rise on renewal. If you’ve made no claims, didn’t change your vehicle and your circumstances haven’t changed, you can call up your insurer to challenge the increase.

  They may not agree to reduce your premiums, in which case you may want to look elsewhere for cover.

  If you stay with the same insurer, the terms of your policy shouldn’t change. If they do, the insurance company must notify you in advance.

• Why is my renewal price more expensive?

  This can be for a number of reasons. If you made a claim during the previous policy term, your premium will most likely rise at renewal. This is the insurer’s way of recouping its costs.

  If you’ve changed your vehicle or had a change in circumstances, this can also affect your premium. Things like the make and model of your car, its engine size, your address and even your job title all affect how much you pay for your car insurance.

  The increase can also be the result of things completely out of your control, like a rise in crime rates in your area, which makes the insurer view you as a higher risk.

  If you believe your premium increased unjustly, you can contact your insurer to ask for an explanation and challenge the increase.

• Does car insurance renew automatically?

  It can do. Many insurers have an auto-renewal programme that they usually enrol every new customer in. This means your policy renews automatically with the same terms (but often a higher price) instead of expiring.

  It’s best to opt out of this and negotiate the renewal terms, or shop around for an alternative policy, as this will almost certainly save you money.