Cash point

Motorists can drive insurance costs down by getting the timing exactly right when buying cover.

Looking for car insurance a week before your policy start date can be the optimum time, rather than leaving it to the last minute, according to Gocompare. The comparison site carried out a study comparing real premiums offered by insurers at six different periods in the month before policies were due to start.

Almost nine out of 10 people saw cheaper quotes, an average £76 less, by shopping around a week before they wanted cover to start. While the week before showed the best savings at 12%, there were savings to be made throughout the month leading up to renewal date.

Younger drivers will see the biggest savings – with the average premium for an 18-year-old at £2,100, it could be up to £252.

Mark Gutteridge from Gocompare Car Insurance, said: “Car insurance is one market where leaving it until the last minute in the hope of getting a bargain definitely doesn’t work.

“Getting next year’s insurance done early could see drivers save a significant amount of money.”

Other ways to help chop costs include checking before paying in instalments, as many insurers will add interest to payments.

Make sure your insurer has the correct information on your mileage – low mileage can reduce costs.