Consumer champion Martin Lewis has issued a surprising “perverse warning” to car insurance holders, advising them to reconsider simply accepting their renewal quotes. Speaking on ITV1 and ITVX’s The Martin Lewis Money Show Live on Thursday, February 13, the founder of Money Saving Expert explained that while car insurance prices appear to have dropped, many drivers could still be overpaying when renewing their policies.
Lewis pointed out that car insurance prices have indeed dropped by 16% year on year. However, he stressed that despite this reduction, the current average car insurance price is still over £800—substantially higher than the £500 rate seen in 2021.
“Car insurance prices have dropped,” Lewis noted, before adding, “So they’re down 16% year on year. But if you still look where they were in 2021, about £500 on average, they’re still over £800 now.” He warned that this price drop, while seemingly positive, has caused many drivers to believe they’re getting a good deal when their renewal price remains unchanged. “So they’re 60-70% up on where they were. So why am I warning you that prices are down?” he asked, addressing the paradox, reports the Express.
The money expert clarified further, explaining that many consumers, used to annual price hikes, are now accepting renewal quotes that might appear stable, without realizing they’re still paying more than necessary. “What I’m hearing a lot these days is that when people do their renewal, they’re so used to prices going up, when they get a renewal that’s the same price they go ‘yay, my renewal hasn’t gone up, I’m sorted’. No. If your renewal is the same, the market has dropped 16%, you’re paying too much,” he emphasized.
Lewis’s advice is clear: don’t settle for auto-renewal quotes. He stressed the importance of shopping around, using comparison websites, and checking for better offers, even from the same insurer. “Don’t auto-renew, don’t settle, combine comparison sites because they serve different insurers and they have different deals even from the same insurers,” he advised.
His top tip for finding the best deals? Begin searching for car insurance quotes 26 days before your policy expires. “Literally, insurers price it cheaper because the people who price it at that point are likely to be a lower risk than the people who leave it to the last minute,” he explained. With this golden rule, Martin Lewis is urging drivers to avoid complacency and make sure they’re not paying more than necessary.
