Martin Lewis warns viewers about drastic car insurance changes
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Speaking on the Martin Lewis Money Show, he said he did “not have a firm answer” on when drivers should renew their policies to save money. He said car insurance prices were in a “flux” market and he was left to “guess” over what could happen in the coming weeks.
His warning comes ahead of new rules from the Financial Conduct Authority (FCA) which will ban price walking from January.
This will stop companies from slowly increasing insurance prices for regular customers year-on-year.
However, Martin has warned prices will not drop in line with new customers rates and has estimated fees could find a new middle ground.
Usually, renewing 23 days before renewal is the cheapest time for drivers to switch but the new rules have now put this in doubt.
Speaking on the show, Barney, a driver from Wiltshere said: “My insurance renewal date is January 5, what can I do to avoid a hefty price rise?”
He confirmed he had previously saved money by renewing his policy 23 days before it ended.
Mr Lewis replied: “That means you’ll already be in cheap prices so anything we are comparing to is already factoring that saving in.
“Here is the difficulty, by leaving it later I am guessing, remember everyone this is a guess, I’m guessing prices will rise for switchers.
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“So you want to try and get a quote now.
“But whether the act of getting a quote earlier will outweigh the 23 day benefit, I mean this is uncharted territory, I simply don’t know.
“I would go and look at a quote now and see whether it saves you.
“If it doesn’t save you I’d hold off a month or two, see what’s happening for prices.
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