When Is the Best Time to Renew Car Insurance? 

Woman Sitting On Car

With inflation currently high in the UK, it is not surprising that people are looking for options to save money. One way to do this is by reducing monthly expenses, such as saving money on car insurance

How do you find the best renewal rate on your car insurance policy? The secret to this largely involves when you renew your cover. 

When Is the Best Time to Renew Car Insurance?

Finding the right time to renew your car insurance can be complex as your price will vary by many factors. There is, however, a distinct period of time when customers can save the most money by renewing their annual cover. 

The best time to renew your car insurance is between 15 to 28 days before your policy expiration date. This has been confirmed by research carried out by Money Supermarket. Other research has noted that opting to renew three weeks prior to expiration can sometimes net even more savings. 

This guideline means you should start comparing rates from different companies roughly one month prior to expiration. When you think about it, it makes sense that companies would offer better rates to customers who renew in advance. 

Insurance is about estimating risks and people who wait until the last minute can be branded as potentially less cautious. Additionally, insurance companies know that people renewing at the last minute will be more desperate to purchase insurance. 

Can I Check When My Car Insurance Is Due? 

Yes. You can check when your car insurance is due in the “renewal date” section on your certificate of insurance. This is the date by which your insurance will expire.  If you are unable to find your certificate of insurance, you can always contact your insurance company. 

While there are some policies that are month to month and auto-renew, most car insurance policies still operate on the basis of annual coverage. For these, the car insurance goes into effect on the date that the policy begins and expires one year later.

Can I Change Car Insurance Before Renewal Date? 

Many people wonder if it is possible to cancel their car insurance policy before the renewal date. Yes. you can change your car insurance before its renewal date. There are a number of considerations you should keep in mind, though.

The most important consideration is when you are cancelling your policy. UK insurance rules provide you with a two-week period where you are allowed to change your mind regarding an insurance purchase. If you cancel a policy during this time, you will receive a refund of any premium paid to your insurer. However, you may pay an administration fee as well as for any days that you were covered by the policy. 

If you decide to change car insurance after this two-week period, you will want to first review the rules of your policy. You may not receive a refund on any optional covers that you have added to your policy. There may be other financial considerations as well. For example, you may not be able to claim your insurance excess back. Since these vary by your insurer, you will want to carefully read your terms and conditions before cancelling.

Does Renewing Early Affect My No Claims Discount? 

No. Renewing your car insurance policy early does not affect your no claims discount

How To Change Car Insurance

If you’ve found a company that offers you a better rate, changing your car insurance is relatively easy, particularly if you are doing so at your renewal. If this is the case, you simply decide on your new policy and have it put into effect on the date that your old one expires. Make sure that you don’t have an auto-renewal on your existing policy though. 

If you are changing insurers in the middle of a policy, the process is a bit more complex. First, carefully review your terms and conditions and contact your existing insurer to make sure you understand the process of cancelling in the middle of the policy. If you still want to cancel, the next step involves signing up for your new policy and then cancelling the old one. 

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