2 weeks ago
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Martin Lewis has urged drivers to shop around for better deals (Image: ITV)
Martin Lewis’ previous car insurance tip could save drivers a staggering £200 on their annual bills, according to a leading expert.
Lorna Macpherson, a motor finance expert at Ocean Finance, has urged motorists to never just "auto-renew" their policy when their existing agreement comes to an end.
Shopping around different providers could ensure cash-strapped road users secure the best possible deal.
It comes after a recent poll suggests that four in ten individuals never look around other firms for better offers.
Car insurance is one of the most expensive annual motoring costs that drivers face every year meaning any savings could be sizeable.
Drivers can save hundreds on car insurance costs (Image: Getty)
Lorna said: "The first thing to do is to break free from the loyalty trap, and don’t assume your current insurer will still offer the best value.
"Our data reveals that nearly 40 percent of drivers fail to shop around for better deals, resulting in them paying more than necessary for coverage.
She added: "This simple step can save you anywhere from £50 to £200, depending on your situation."
MoneySavingExpert founder Martin Lewis has previously warned drivers about the importance of shopping around.
When asked how motorists can save on car insurance, the finance guru stressed road users should not accept a car insurance renewal quote before looking around elsewhere.
He explained: "NEVER auto-renew – always check if you can get cheaper car insurance elsewhere.
"Our Car Insurance Compare+ tool does this for you, plus gives many other tips on how you can make further savings – for example, it's usually cheapest to renew around 23 days before your renewal date, and (legally) tweaking your job title can save you £100s. If you don't want to switch, always haggle – it does work."
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The 23-day rule may seem unimportant but Martin has stressed motorists who act quickly will benefit from the best deals.
He previously told ITV: "The perfect time to get car insurance is 23 days before your renewal. That’s not for your renewal quote, that’s for going onto comparisons to get different quotes.
"It seems absolutely ridiculous but insurance pricing is all about actuarial risk. And what their risk shows them is the type of people who get car insurance early are a lower risk so they give them a lower price."
English (US) ·