Revealed: the cheapest day to buy car insurance

Car insurance premiums are on a downward trajectory after surging in recent years – but drivers could still make savings.

The average cost of annual cover in 2025 was £564, a drop of £58 from £506 in 2024, according to the Association of British Insurers (ABI), the trade association for UK insurance companies.

This came after premiums rose by a staggering 82% between May 2021 and June 2024, according to the Office for National Statistics, in part due to higher wholesale energy costs and increased claims post-pandemic as motorists returned to the roads after multiple lockdowns.

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But despite premiums dropping somewhat, they are still well above levels seen pre-2021. Drivers can still cut costs, starting with timing when they renew their policy.

When is the cheapest day to buy car insurance? 

The cheapest time to renew your car insurance is usually three to four weeks before your policy is due to end, according to research by MoneySuperMarket.

In terms of an exact day, this can fluctuate and change, but MoneySuperMarket says it is around the 25-day mark.

Renewing an annual policy then compared to on the day your existing policy ends could save you £346.

MoneySuperMarket says it’s cheaper because drivers who renew earlier tend to make fewer claims and insurers factor this risk profiling into their pricing.

Credit: MoneySuperMarket

How to cut car insurance costs 

There are a number of other ways you can cut car insurance costs.

Avoid making modifications

Making modifications to your car can improve the efficiency of your motor, but they will make it more attractive to criminals.

It will make it more expensive to repair and more likely to be stolen, and is therefore riskier for insurers. Firms will factor this into the price they offer you.

Park wisely

If you have one, park your car in a garage or driveway overnight.

Parking off-road can lower the chances of your vehicle being damaged or stolen and drive down your premium.

Pay annually

Paying for your yearly car insurance up front will almost always work out cheaper than paying monthly.

This is because by paying monthly you are effectively taking out a loan with the insurer and are charged interest and additional fees on top.

Tweak your job title

Some job titles are seen as less risky than others, so you can tweak it during the application process (so long as it’s still accurate) and end up paying less for car insurance.

For example, a caterer might be quoted a lower price than a chef, and a motor dealer might be quoted a lower figure compared to a car dealer.

We reveal 18 tips to cut your car insurance in another piece.