Motorists are being warned that they are missing out of saving over £250 on their car insurance by leaving it too late to switch.
UK motorists who change early could end up banking some excellent savings but those who leave it late can be penalised.
According to comparison site GoCompare, drivers could save at least 12 per cent, or £76 by renewing their premium at least one week before it expires.
The research also found that younger drivers stood to benefit from the biggest savings, being offered up to £252.
The report was compiled by Consumer Intelligence for GoCompare.
GoCompare’s Mark Guttering said to The Sun: “Car insurance is one market where leaving it until the last-minute in the hope of getting a bargain definitely doesn’t work.”
“This is great news for drivers, especially those who pay a lot more for their car insurance — for example, younger drivers.
“The average premium for an 18-year-old driver is £2,100, meaning a 12 per cent reduction could represent a saving of £252.”
Auto renewal is the easy option as there is no need to trawl the internet on comparison sites for a new policy or deal.
This approach, however, could provide more costly.
Car insurance is at a record high amount in the UK with average premiums costing upwards of £647, according to Confused.com, with this figure expected to break the £1,000 mark in 2018.
Reasons for the increase in cost are because of an increase in Insurance Premium Tax(IPT) and an alteration to how compensation is calculated for people with life-changing injuries.
Research revealed earlier this year by GoCompare.com suggest that nearly a third of drivers have stuck with the same company for three years.
Collectively the money wasted by these motorists could reach as high as £1.5billion.
Motorists can, however, take a number of steps to save cash.
Top tips to avoid wasting money on your insurance:
1. Use comparison websites
Website such as Compare the Market, Go Compare, Money Supermarket and Confused.com aggregate car insurance deals from across the web displaying the cheapest to the most expensive.
The services can be tailored to your specific requirements but be aware that the initial price displayed is not always the final cost due to optional extras.
2. Shop around
Some car insurers such as Direct Line don’t advertise on comparison websites so it can be worth doing your own hunting, because you may just find a better deal.
3. Don’t automatically renew your policy
Doing this could lose you up to £286 per year and nobody wants that.
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