Expert reveals exact time UK households need to | European Markets

UK households can slash £534 off their annual car insurance coverage prices by avoiding two pricey errors.

Motoring consultants #1 Plates say that purchasing your car insurance coverage at a particular time may end up in vital financial savings, as can the sort of fee technique you select.

The consultants warn that by shopping for on the fallacious time and deciding on the fallacious fee plan, you might be opening your self up to staggering overcharges.

Firstly, timing is important as insurance coverage corporations calculate premiums based mostly on perceived risk, so in the event you depart your buy till the final minute, then you could be seen as disorganised and probably increased risk – which may result in increased prices.

To keep away from this, consultants say you need to intention to buy your car insurance coverage between 21 and 26 days early as this alerts to insurers that you simply’re a cautious planner, which in flip results in decrease charges.

Based on #1 Plates, making a late buy will likely be pricey and people who buy their car insurance coverage on the identical day face paying up to £202 more than arranging it 21 to 26 days prematurely.

Secondly, when selecting your month-to-month fee plan, insurers usually deal with the settlement like a loan and can add curiosity charges that may exceed 20%. Even drivers with good credit typically finish up paying an additional 10% or more, however in the event you change to an annual fee plan as an alternative you’ll be able to remove these prices completely. 

Specialists say those that pay month-to-month as an alternative of yearly can add an additional £267 to their invoice resulting from curiosity charges. Collectively, these two errors can imply paying a whopping £534 more per yr to your car insurance coverage.

To keep away from these prices, consultants say you need to intention to secure your coverage a minimum of 21 days earlier than it begins, pay yearly to keep away from the hidden curiosity charges of month-to-month funds, and examine quotes on comparability web sites earlier than shopping for to make sure you’re getting the most affordable deal.

It’s additionally price reviewing your coverage particulars to double test that your mileage and utilization estimates are correct to keep away from any inflated prices.

A spokesperson from #1 Plates stated: “Too many drivers overpay for car insurance without realising it. By buying early and paying annually, you can save hundreds of pounds. These small adjustments make a huge difference, and it’s something every motorist should take seriously.

“Don’t let these avoidable mistakes drain your wallet. Take control of your car insurance today, and you could save up to £534 a year. That’s money better spent on upgrades, repairs, or even a holiday.”