The cheapest day to purchase auto insurance was discovered

After skyrocketing last year, auto insurance rates are now declining

If you put in a little more preparation, though, you could push them down even thinner. We disclose when it is most affordable to purchase auto insurance.

The cost of auto insurance is finally declining after skyrocketing last year.

By the end of 2024, the average cost of auto insurance was 834, according to a comparison website called Confused.com.

Although costs have dropped by 161 (-16 percent) annually since the startling peak of 941 at the end of 2023, they are still far higher than they were before the pandemic.

High insurance premiums have been maintained by inflation and an increase in claims. With fuel prices significantly higher than average prior to 2020, driving has become more expensive.

That means that even though last year's highs have subsided, drivers' finances are still tighter than ever.

Nevertheless, there are strategies to reduce your auto insurance premiums, and prudent planning may enable the typical driver to save more than £150 annually.

Which day is the most affordable to purchase auto insurance?

Comparative website Go found that 26 days prior to your renewal date is the best time to purchase auto insurance. In contrast.

The cost of a policy is typically £390,164 lower when purchased the optimal number of days prior to renewal than when it is purchased at the last minute.

Depending on the day of booking, your auto insurance premium may vary by the following amount.

Get it here. Examine data collected from January to December of 2024.

You won't be spending much more money if you decide to renew your insurance a few days before or after the 26th day before the deadline.

Generally speaking, auto insurance costs about 14 more than it might be on the 29th day prior to renewal; if you buy a policy only 15 days prior to the expiration date, the price increases to 19.

According to the data, the cost of auto insurance increases dramatically starting 15 days prior to the renewal deadline.

Expect to pay an additional 29 for the same coverage if you make your reservation 10 days prior to the renewal deadline, and nearly 100 more if you wait until two days prior.

If you renew on the day of the deadline, you will be 164 worse off than if you renew the day before the deadline, which will cost you 121 more.

Tom Banks, a Go spokesperson for auto insurance, cautions against the dangers of delaying your renewal. Compare states: "A lot of drivers are unaware that the day they purchase their policy can affect the cost as well.

Last-minute drivers are frequently seen as more risky, which raises the possibility of premium increases. Buying ahead of time, however, shows that you are well-organized and responsible, qualities that insurers value and reward with reduced rates.

Thus, 26 days is the sweet spot and could be worth noting in your journal. But it's crucial to understand that there are additional considerations when determining your auto insurance rate, as well as additional ways to save money.

How to lower the price of auto insurance.

The cost of your auto insurance premium can be reduced in a number of ways.

Purchase a yearly policy.

You should pay off your policy all at once if you can afford to do so. The alternative is to pay your premium on a monthly basis, but this will result in higher monthly payments because interest will be added.

Build a bonus that doesn't claim anything.

Your no claims bonus is worth a lot, in case you were wondering. Your no claims discount will accumulate and deduct a certain amount from your premium for each year that you do not file a claim under your policy.

Although no claims discounts differ from one insurer to the next, according to the Association of British Insurers, the trade group for the auto insurance sector, they can reach up to 30% for a single year without a claim and 60% for five years.

Being a named driver should be avoided.

Adding yourself to someone else's insurance policy is known as being a named driver. It indicates that you can operate the car as well and that you are covered in the event of an accident or damage to the car. However, the primary driver's name would appear on any policy claims.

Since they are new to driving and will not be eligible for a no claims discount, young drivers and those just starting out should anticipate paying high auto insurance rates. Adding an experienced driver as a named driver is a smart idea in this situation.

Expert Connor Campbell of Independent Advisor Auto Insurance stated: "A parent with more driving experience will typically receive lower premiums if they are added to their policy as a named driver. But, since it's the only way to increase your no claims bonus, it's crucial to continue driving your own vehicle if that's your policy. You are not eligible for a no claims discount as a named driver.

Change the title of your job.

Unbelievably, you can reduce your auto insurance costs by changing your job title. To help you take advantage of this oddity, the BFIA has a guide.

Always keep your insurance when driving.

Even though this may seem simple, it is still worthwhile to confirm that your vehicle is truly covered by insurance and that you haven't unintentionally revoked your policy.

In addition to being illegal, driving without insurance may earn you a reputation as a careless driver, which could result in increased premiums from insurance companies.