Martin Lewis, the well-known financial expert, is urging car owners to take note of an important update that could potentially save them hundreds of pounds on their car insurance renewals. According to Lewis, car insurance prices have decreased by 16% year-on-year. However, despite this drop, prices are still nearly 60% higher than they were in 2021, with the average cost standing at £834. As a result, Lewis is cautioning people to not simply accept their renewal quotes without comparing them to the wider market first. He emphasizes that sticking with the same renewal price could mean unknowingly overpaying significantly.
Lewis recommends using the Money Saving Expert’s Compare+ Car Insurance tool to easily check how your renewal price stacks up against other options in the market. Even if you are not at the point of renewal, it is advisable to compare quotes to potentially secure significant savings. Lewis shared a success story from a user named Karen, who managed to find car insurance for her 17-year-old son at a much lower price using the tool, thanking Lewis for the valuable advice.
To help consumers save money and avoid overpaying, Lewis outlined four key steps that individuals should consider. Firstly, he suggests using the Compare+ tool, which offers more than just a simple comparison. Users can input their details, receive cost-cutting tips, and view the cheapest insurers as a benchmark. The tool also provides personalised tips to help secure a larger saving, such as exploring options like adding an additional driver or opting for annual payments instead of monthly instalments.
Lewis further advises car owners to explore switching insurers mid-year if it results in cost savings, contrary to the misconception that policies cannot be changed outside of renewal periods. By checking with Compare+ and setting a start date for the new policy about three weeks ahead, individuals can potentially secure lower premiums. If a new quote offers significant savings compared to the current policy, it may be worthwhile to switch, bearing in mind any potential admin fees and loss of no-claims bonuses.
For households with more than one car, Lewis recommends investigating multicar policies to determine if they offer savings. Many insurers provide discounts for insuring multiple vehicles under one policy, while others offer separate policy discounts for each car. By comparing both options, car owners may find opportunities to reduce insurance costs. Additionally, Lewis stresses the importance of ensuring that the policy chosen provides the necessary cover and encourages individuals to lodge complaints if they feel unfairly treated by insurers.
In conclusion, Martin Lewis’s advice serves as a valuable resource for car owners looking to maximise their savings potential on car insurance. By being proactive, comparing quotes, and exploring different policy options, individuals can make informed decisions to ensure they are getting the best deal possible. Taking the time to review and potentially switch insurance providers could result in substantial financial benefits in the long run.