Drivers are being encouraged to double-check their car insurance policies as money saving expert Martin Lewis warns that motorists are “likely overpaying” for their coverage.
New data from the Association of British Insurers (ABI) shows that the average price of insurance has fallen to £562 in the period April to June.
Martin Lewis has called on drivers to make savings when renewing their car insurance
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In the latest edition of his Money Saving Expert newsletter, Martin Lewis gave a “crucial reminder” to motorists to look around at prices before renewing.
The consumer champion said that September was a “busy renewal time”, but said drivers shouldn’t accept the deal they are offered from their insurer, even if it is lower than what they are paying.
Drivers are consistently encouraged to shop around when looking for car insurance, whether they need to renew or not, as they could end up saving elsewhere.
One driver, named Ian, told the MSE team that he had used the Compare+ car insurance tool to save hundreds of pounds.
He explained: “This past year, my car insurance was £656 and I received my renewal letter in late Feb 2025. It had shot up to £1,170, yet nothing had changed on my policy!
“Used the comparison tool and managed to get exactly the same cover for £481 [saving £689/year]. Totally delighted!”
Motorists are also encouraged to renew at a specific time before their policy runs out to optimise their savings, based on analysis of 1.2 million quotes.
While huge savings can be seen between roughly 20 and 27 days before renewal, the “sweet spot” is 26 days prior. Lewis noted that it would not work for everyone, but “many will be able to save £100s”.
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Another driver, named Rob, emailed the MSE team to share that he had saved more than £450 per year by using comparison sites 26 days before he had to renew.
Motorists could also save by considering their own circumstances, since comparison sites do not check multicar cover, with drivers encouraged to check manually.
Some of the biggest car insurance providers offer discounts on multicar, including Admiral, LV, Aviva, Diamond and Elephant.
In regards to combining car and home cover, the MSE team explained that it was “trial and error”.
Drivers are encouraged to shop around when looking to renew their car insurance
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GETTYGeneral guidance from motoring experts is to haggle with offers, even if they are happy with the services their insurer is providing.
Drivers can often find cheaper deals with other insurers and can use these deals to counter what has been offered by their own insurer.
Data from Money Saving Expert indicates that the success rate when haggling is over 70 per cent for Admiral, AA and Hastings Direct customers.
