This is When to Buy Car Insurance to Save up to 50%

You may be surprised to hear, but when you buy car insurance has a massive impact on the price you'll pay. We've run some sample quotes to determine when is the best time to buy car insurance and to discover how much you can save by purchasing at the right time.

When is the Best Time to Buy Car Insurance?

NimbleFins research shows that the best time to compare and buy car insurance is 3 weeks before your renewal date, when motorists can save up to 30% or more.

Supporting our research, on 4 April 2024 money-saving expert Martin Lewis said on ITV1's Tonight program (for which NimbleFins provided research):

"The perfect time to get car insurance is 23 days before your renewal. That is (the time) for going onto comparison sites to get different quotes. You may pay nearly double if you wait to the last minute to get your car insurance."

Buying early doesn't mean that you double up on car insurance for those three weeks. Instead, you purchase your new policy with a forward-dated start date. This means that you'll need to commit to your policy a few weeks in advance, so it's important to think ahead while in the process of buying a new vehicle or reinsuring your existing one. When getting a quote, you will be asked when you want cover to start—if you're prepared ahead of time, you should be able to line this up with the end of your existing cover.

How Much You Can Save Buying Car Insurance at the Right Time?

Our analysis showed that you can save up to 30% or more on your car insurance just by purchasing your policy with a start date 3 weeks away (when compared to an immediate start date). We analysed over 200 Ford Fiesta car insurance quotes for a sample 45-year-old driver with a range of start dates from today to 3 weeks from now, taking the average of the cheapest 10 policies for each time window. We found that some insurers charge over £1,000 extra for a last-minute purchase with an immediate start date.

What's more, you could save over 17% just by buying your policy one day in advance—insurers are cautious of drivers who want to leave these things to the last minute, so the more prepared you are the more you'll save.

More Selection When You Buy Early

In addition to paying a lower price, you have more selection when looking for a car insurance policy well in advance. In our analysis, we gathered 46 quotes for a start date 3 weeks away. But only half of these companies were willing to even offer a quote for an immediate start date. If you buy with at least one week to go, you'll basically get access to the full range of policies available to you—yet another reason to buy insurance ahead of time. It's also something to keep in mind when you're in the process of buying a car, whether new from a dealer or used from a private seller.

Which Car Insurance Companies Might Not Insure You if You Buy Last Minute

In our study, a number of reputable car insurance companies that offered cover for a plan bought three weeks in advance did not offer coverage for the same sample driver if coverage was to start the same day. That's not to say these companies won't ever offer last-minute coverage—they might—but we want to illustrate how you have fewer potential choices if you buy last minute.

Why is car insurance cheaper if you buy it in advance?

It's hard to say exactly why car insurance companies price their policies the way they do. Typically, a car insurance policy is priced based an insurance company's past claims experience for a certain profile of driver. Perhaps those who buy car insurance at the last minute (e.g., with a "today" or "tomorrow" start date) tend to submit claims more often. Maybe car insurance companies prefer a more organised client who doesn't leave decisions until the last minute. Or it could be that drivers needing insurance immediately take less time to shop around, and are therefore more likely to take a higher price—in this case, car insurance companies can get away with pricing plans a bit higher.