Millions of UK drivers are being warned they could be paying hundreds of pounds more than necessary for their car insurance due to a widespread industry practice.
The Auto-Renewal Trap
Experts are urging households not to fall for the common 'trick' of letting their policy auto-renew. While convenient, this method often means drivers pay a premium for the same level of cover they could secure cheaper elsewhere.
The reminder comes as most car insurance policies are set to run for a standard 12-month term. Allowing your cover to roll over automatically could see you paying more than you need to, according to consumer champions.
The 'Sweet Spot' for Savings
Recent data from the price comparison site MoneySuperMarket provides a clear solution. The optimal time to shop for a new car insurance policy is between 21 and 28 days before your current one expires.
Drivers who organise their renewal in this window save an average of £300 or more compared to those who leave it until the day their cover runs out.
Alicia Hempstead, a car insurance expert at MoneySuperMarket, advised: "Your renewal notice usually lands around a month before your policy ends, and this is your window to act."
Consumer expert Martyn James added weight to the advice, stating: "Research has shown repeatedly that the 'sweet spot' for negotiating reduced insurance is three to four weeks before renewal."
He suggested that insurers may view early shoppers as "organised, motivated and above all else, risk-averse" customers who are more likely to switch providers, prompting them to offer more competitive initial quotes.
Broader Market Context
The warning comes against a backdrop of generally falling premiums. The Association of British Insurers (ABI), which tracks nearly 28 million policies sold annually, reports that motor insurance premiums have fallen each quarter so far in 2025.
Chris Bose, the ABI's Director of General Insurance Policy, commented: "Three straight quarters of falling motor premiums will be welcome news for drivers and the industry alike."
He did, however, sound a note of caution, adding: "These continue to be tough times for many families facing higher cost-of-living bills, and underlying pressures on claims haven't gone away."
For individual drivers, the message is clear: proactive management of your renewal date remains one of the most effective ways to keep insurance costs under control, even in a softening market.
