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When it comes to buying auto insurance, one of the most important considerations is price. Knowing when to buy auto insurance can save you hundreds of dollars per year, so it’s worth doing your research and taking the time to find the right policy for you. In this article I’ll explore when is the best time to buy auto insurance for price, drawing on relevant research papers published after 2015.
In the UK, there are two main ways to purchase car insurance – from a comparison website or direct from an insurer. There are pros and cons associated with each approach, but both can offer great deals if you know when to shop around. You will also have options to pay for your auto insurance annually, or monthly.
According to research by the Money Advice Service (MAS), shopping around for auto insurance can save you as much as £300 a year. The MAS recommends that you shop around every two years and make sure that any new policy offers at least the same level of cover as your current one. The best time to buy auto insurance largely depends on your individual circumstances and needs. However, there are some general rules that everyone should follow:
- Shop around in advance: If possible, start shopping for auto insurance at least three months before your current policy expires. This will give you plenty of time to compare policies and make sure you get the best deal available. You’ll also find it is cheaper. Insurance companies know that when insurance quotes are requested for policies starting immediately (or very soon), the customer is probably desperate – then they get stung on the price. Don’t leave it too late, and certainly get your quotes at least two weeks before you need the policy to start!
- Research all options: Don’t just stick with one provider; take the time to research all available options and compare prices across different providers. Make sure you read reviews and check customer feedback before making a decision.
- Be flexible with dates: Shopping around at different times of year can also bring savings; try comparing prices during peak times such as December or June, when insurers may be offering discounts or special offers.
- Take advantage of loyalty schemes: Many insurers offer loyalty schemes where customers who stay with them for a certain period can receive discounts on their renewal premiums; if you plan on staying with your current insurer for some time, it’s worth checking out how their loyalty scheme works and taking advantage of any savings available.
Research by Consumer Intelligence found that customers who switched car insurers saved an average of £222 in 2017 – so it definitely pays off to shop around and compare policies regularly! It’s also important to consider what type of coverage you need before buying auto insurance; comprehensive cover provides more protection than third party only cover but is usually more expensive, so think about what level of cover is right for you before committing to a policy.
Bear in mind that insurers use different criteria when setting their rates – age, postcode and even occupation can have an impact on how much you pay – so it’s always worth speaking directly to an insurer if they seem like they could be offering better value than other providers in your area or online comparison sites.
To sum up, there is no single ‘best’ time to buy auto insurance for price; however, by following a few simple tips – such as shopping around in advance and researching all available options – you can make sure that you get the best deal possible whenever you decide to renew or switch policies.