Martin Lewis pleaded with drivers to apply for new car insurance 21 days before it expires – claiming it can save you up to Â£ 500 because you’re seen as “low risk”.
The founder of Money Saving Expert was back on ITV for his show Thursday, October 21, where he told viewers that a demand too close to the end of your current insurance would drive up prices.
From what he had seen, 21 days was the perfect time to get a good deal, and one happy viewer said she saved half a grand.
Her co-host Angellica Bell said: âA lot of people have followed this 21-day rule, including Nettie.
“She saved herself Â£ 500 which is great.”
Martin then explains, “So the 21 day rule … is that if you’re about to be renewed, this is the place to get your new quotes because insurers think you are.” then low risk, but if you leave it until the last moment, they think you are a higher risk and the price may go up by 50% or more. “
He also warned that the cost of home insurance is expected to rise in January.
The finance guru’s weekly newsletter said: âAs the new regime officially begins in January, insurers will likely start modifying their pricing algorithms sooner.
“So time is running out and the cheapest prices may start to disappear within a few weeks or months.”
He also warned anyone on a tracker or adjustable rate mortgage that they should change as soon as possible, predicting an interest rate hike next month.
“EVERYONE with a mortgage should check now to see if your existing deal is as good as it can get,” he wrote in the newsletter.
“This applies double if you languish on your lender’s standard variable rate.”
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