Drivers urged to use loophole to slash car insurance by nearly half - 'Significant savings'

Despite this potential windfall, 62 per cent of motorists were recorded as missing out by renewing at the worst possible time.

The findings follow a comprehensive study that identified 10 practical strategies drivers can use to reduce their insurance premiums, with renewal timing emerging as the most significant money-saving opportunity available to UK motorists.

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The research found that leaving insurance renewal until the last minute is the costliest approach, yet nearly two-thirds of customers purchase during this expensive period.

Data analysis showed that organised motorists who give themselves adequate time to shop around and compare multiple quotes before deciding whether to renew or switch policies typically secure better deals.

The study emphasised that allowing policies to renew automatically can cause drivers to miss out on significant savings, particularly as car insurance premiums have begun dropping in price.

The analysis identified multiple factors beyond timing that can influence premium costs, including parking location, voluntary excess amounts, and even the specific wording of job titles on applications.

Greg Wilson, CEO and car insurance expert at Quotezone, said: "With household costs rising, no one wants to waste money, and timing your car insurance renewal right could save you hundreds.

"Some of the most common and costly mistakes drivers make include letting policies auto-renew, leaving it too late to buy, and not shopping around. Drivers usually get a reminder a month before their policy ends - that's the perfect time to start comparing quotes."

The data showed that the sweet spot between 15 to 24 days before the new policy starts is when premiums could be up to 45 per cent cheaper, offering "significant savings".

Wilson stressed the importance of negotiating with current providers and using price comparison websites to simplify the process of comparing multiple insurers and products simultaneously.

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Avoiding automatic renewals emerged as another crucial tip, with experts recommending drivers untick the auto-renewal option when purchasing new policies to prevent missing future savings opportunities.

Comparing quotes from multiple providers when renewal notifications arrive one month before expiry allows adequate time for thorough market research.

Increasing voluntary excess amounts can reduce premiums, though drivers must ensure they can afford both compulsory and voluntary excess in the event of a claim.

Limiting annual mileage also reduces risk profiles, with accurate estimates potentially leading to lower premiums. Adding an experienced named driver can save young motorists over £350 on their policies, though the main driver must be correctly declared as the person who spends the most time behind the wheel.

Quotezone data revealed that obtaining quotes between midnight and 6am results in premiums around 22 per cent higher, potentially costing drivers up to £170 more.

Parking location significantly impacts costs, with driveway parking saving up to 24 per cent compared to street parking away from home. Job title wording can also affect premiums, though any adjustments must remain factually accurate to avoid invalidating cover.

Security measures, including immobilisers, trackers, industry-approved alarms and dashcams, can reduce premiums, with nearly 10 per cent of drivers unaware if their vehicle has a tracker installed.

Wilson warned: "But always be honest about the details. Giving inaccurate information can invalidate the cover completely."