When is the best time to renew car insurance?

How does the car insurance renewal process work?

'My renewal quote doubled, but nothing's changed with me – why?'

We've heard this cry a lot over the last 12 months as insurers have been steadily putting prices up. The rise you've seen could be down to rising costs that insurers have to pay to get vehicles repaired or replaced (such as rising staff costs, more expensive parts). Or it may be that your insurer has changed its strategy and no longer wants to offer the best prices, or no longer wants customers with your risk and driving profile.

Of course, the above assumes that nothing's changed with your circumstances. If it has, then where you live, the car you drive, and any driving convictions or accidents (losing any no-claims bonus) can all change the price you're quoted – see what affects car insurance quotes.

Yet rather than comparing your new price to the one you paid last year, use a price comparison site to see quotes from multiple insurers at once, so you can work out where your renewal price sits. If all insurers are quoting a similar price, then it's likely that's just the new level you'll need to pay. But never assume this without checking, you could miss out on the best deal and saving £100s. Here's where you should start:

Alternatively, you can check our current list of which price comparison sites to try and in what order – full info in How to get cheap car insurance.

When's the best time to buy car insurance?

Why is it cheaper to renew my car insurance earlier?

When our best time to buy analysis concluded that insurance prices differed depending on how far in advance you got the policy, what insurers told us was generally the same thing – it's based around risk.

Buying insurance a few weeks before you need it suggests you're more careful and organised, while leaving it to the last minute means you're seen as higher risk. Some insurers have told us they've seen a direct link between drivers who leave sorting their insurance to the last moment and those who make a higher number of claims.

As for why the super-prepared are being penalised with higher prices for getting a quote 30 days in advance, it's basically because there are fewer insurers returning quotes at that stage.

I've found a cheaper policy – how do I cancel my old insurance?

If you've found a cheaper or better policy elsewhere and want to leave your current insurer, you just need to let it know before the automatic renewal date, usually via phone or online chat.

The old insurer may ask you about the new policy and the price you've found, and will usually see if it can match it (or come close) to try and lure you to stay. If its counter-offer is decent and you choose to accept it, then your insurance will automatically renew at that new price. If you've already signed up to a new insurance company, just remember to cancel. You can usually do this with no cancellation fee within the first 14 days – this is known as a 'cooling-off period'.

If you still want to cancel, your insurer will process your request and you should receive confirmation that your cover will stop at 11.59pm the day before your renewal date. See car insurance cancellation for more help.