People should "not just accept" the figure that their car insurance will automatically renew without making their own simple check first, experts say. Taking a few minutes could save UK drivers a significant amount each month, motorists are being told.
In a recent Money Saving Expert (MSE) newsletter, Martin Lewis and his team of professionals said: "Don't just accept your renewal quote, even if it's the same as last year - prices are down around 10%. Even if you're not at renewal, see if you can lock in a cheaper price now."
The finance expert and his team claimed that, after years of increases, the average policy price has steadily dropped. However, driven by rising inflation due to the Middle East conflict, motorists could be hit with higher bills as average prices are expected to "creep up", according to analyst Defaqto.
The quickest way to see a range of products and see the difference in pricing is to use a comparison tool or website. To find some of the cheapest deals and use all of the MSE-approved tips to lower costs, use Martin Lewis' free Compare+ Car Insurance tool.
After answering the usual questions about your car, requirements and driving history, it gives a "benchmark quote using the cheapest deal". From here, the tool goes further than most by offering personalised tips that could help lower the price even further.
It checks the level of excess, the best way to pay, the cheapest acceptable job title, whether to add extra drivers, and whether it's worth combining home insurance. One MSE fan claimed they used the comparison tool and saved nearly £300 a year by cutting their car insurance down from an auto-renewal price of £549 to £251.
Should I check even if I'm not due to renew soon?
MSE said: "If the prediction is right and prices do climb, getting a new policy now means you benefit from locking in the current lower prices for a year. This is only worth doing if you haven't claimed and can find a materially cheaper price than you currently pay.
"If you can save, sign up for your new policy, then cancel your old one. You should get a pro-rata refund for the rest of the year (bar a £50-ish admin fee), but you usually won't earn the year's no-claims bonus."
If you are happy with your insurer and don't want to switch, use the results from this tool to negotiate a better price. Ask your insurer to match the best deal you get from here. It might not be able to, but it might offer any reduction it can to retain your business for another year.
Anyone with a car should pay this legally required fee before driving on UK roads, which is why Martin is regularly asked about it, and why it is as cheap as possible. In a previous episode of his Money Show on ITV, he claimed there are three ways to potentially lower insurance prices - and some seem illogical.
He specifically aimed this advice at younger or new drivers, who are often hit with higher premiums during their first few years on the road. You can read the full story about those tips here.