Speaking on Thursday’s episode of Martin Lewis’s Money Show, the economics guru spoke of an upcoming deadline that viewers should keep in mind.
As Martin explained, home and auto insurance providers are required to bill existing customers the same as new customers starting next January.
While this looks positive, the change could spell the end of “the end of cheap switch offers” as prices are adjusted.
Martin revealed how viewers can save money by switching providers as soon as possible, encouraging them to check out price comparison sites and consider their options as it could save them hundreds of dollars.
Act now to save money before the January deadline
“It’s the end of the loyalty bonus,” Martin said of the big insurance rule change coming on January 1. “The window of opportunity to bring you an inexpensive switch offering is now.”
“There are six million non-changers paying up to 150% – more than two and a half times more than new customers,” he said, explaining the implications of the change.
While Martin explained that he couldn’t be sure what effect the change would have on prices, he said, “I think the savings are going to drop drastically for those who compare and change every year.”
As a result, he urged budget-conscious viewers to act now.
“I want you to check now if you can save even if your renewal is in six months,” he said. “If you find that you can save a lot, start a new policy and cancel the old one. Check the cancellation conditions. Normally provided you haven’t claimed you will get a pro-rated refund less around £ 50 in administration fees and you are unlikely to earn your no-claim bonus. ‘
Timing is the key for new insurance quotes
Martin has also given great advice to people looking for the best quotes shortly before renewing their insurance – and it’s all about the timing.
“For those of you who are close to your renewal, the thing I often talk about is timing. The ideal time to get new auto insurance quotes is 23 days before your renewal. For home insurance, it’s 21 days.
“The reason is that if you leave it later, insurers will classify you as higher risk and increase your price,” he explained.
Thinking of changing? Make sure you’re doing it right
“Don’t use just one price comparison site,” Martin urged viewers considering switching now to a cheaper deal. “Instead, go around and use two or more. Check Direct Line as it is not on price comparison sites. ‘
He also advised to always check policy details before signing up, so customers make sure they don’t get sidetracked by lower prices and miss any hidden details.
Finally, he said: “It is also worth using cashback sites like Top Cashback or Quidco. Because if you buy insurance through them, you can get up to £ 70 to do it that way. They’ll check the prices the same way, or you can use their comparisons.
It comes after Martin shared eight smart ways to earn £ 1,000 and more before Christmas.
The consumer champion recommends changing banks to earn money, get vouchers to use for gifts, while married couples can claim nice tax benefits.
Reveal advice on his MoneySavingExpert newsletter, he said: “This week is about quick ways to get free and legitimate money, to try and help during this time of high spending as the holiday season approaches. .
“Following some or all of these plans should reduce the risk of debt or disappointment. “
The Martin Lewis Money Show continues Thursday at 8:30 p.m. on ITV.
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