The January deadline could have big implications for consumers (Picture: S Meddle/ITV/Shutterstock)
Martin Lewis has been working hard to make his fans’ cash go further, and he’s now revealed how to save hundreds on home and car insurance by switching now.
Speaking during Thursday’s episode of Martin Lewis’s Money Show, the economics guru spoke about an upcoming deadline which viewers should bear in mind.
As Martin explained, home and car insurance providers are required to charge existing customers the same as new customers from this coming January.
While it sounds like a positive, the change could spell ‘the end of cheap deals for switchers’ as prices are adjusted.
Martin revealed how viewers could save money by switching providers as soon as possible, encouraging them to check price comparison sites and consider their options – as it could save them hundreds of pounds.
Act now to save money before the January deadline
Martin had more top advice on Monday (Picture: S Meddle/ITV/Shutterstock)
‘This is the end of the loyalty premium,’ Martin said about the big insurance rule change incoming on January 1. ‘The window of opportunity to bag yourself a cheap switchers deal is now.’
‘There are six million non switchers who pay up to 150% – more 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 about the effect the change will have on prices, he said: ‘I think savings are going to drop radically for those who compare and switch each 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 six months away,’ he said. ‘If you do find you can save substantially, start a new policy and cancel the old policy. Check the cancellation terms. Normally, provided you’ve not claimed, you’ll get a pro rata refund minus about a £50 admin fee and you’re unlikely to earn your no claims bonus.’
Timing is key for new insurance quotes
Martin is helping viewers save cash on insurance (Picture: ITV)
Martin also had top tips for people looking to get the best quotes shortly before their insurance was up for renewal – and it’s all to do with timing.
‘For those of you who are near your renewal, the thing I often talk about is timing. The perfect time to get new quotes on car insurance is 23 days before your renewal. For home insurance, it’s 21 days.
‘The reason for this is if you leave it later, then insurers categorise you as a higher risk kind of person and put your price up,’ he explained.
Thinking of switching? Make sure you’re doing things right
‘Don’t just use one price comparison site,’ Martin urged viewers who were thinking of switching now to find a cheaper deal. ‘Instead shop around and use two or more. Check Direct Line as it’s not on price comparison sites.’
He also advised to always check policy details before signing up, so customers ensure they don’t get distracted by lower prices and miss hidden details.
Finally, he said: ’It’s also worth using cashback sites like Top Cashback or Quidco. Because if you get insurance through them, you can get up to £70 for doing it that way. They’ll check the prices the same, or you could use their comparisons.’
It comes after Martin shared eight smart ways you can make £1,000 and more before Christmas.
The consumer champion recommends switching banks to earn cash, get shopping vouchers to use for presents, while married couples can claim some nice tax perks.
Revealing the tips on his MoneySavingExpert newsletter, he said: ‘This week, it’s about quick ways to get legit free cash, to try to help in this high-spend period in the run-up to the festive season.
‘Following some or all of these plans should reduce the risk of debt or disappointment.’
The Martin Lewis Money Show continues on Thursday at 8.30pm on ITV.
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