How can I lower my car insurance at renewal?

Your insurer has to send your renewal notice before the policy ends, and it must show last year's premium alongside the new one so you can see the change. That notice is a useful prompt to start comparing rather than letting the policy renew automatically.

Many insurers price policies bought a few weeks in advance more favourably than those bought a day or two before the start date, because last-minute buying can be treated as a higher risk. Comparing around three to four weeks before renewal gives you time to check quotes properly without rushing.

The FCA's general insurance pricing rules, in force since January 2022, stop insurers charging existing customers more at renewal than they would charge a new customer with the same risk buying through the same channel. This ended the practice of gradually raising prices for loyal customers.

The rules don't mean your renewal price is the lowest available. They compare your price with what your own insurer would charge a new customer, not with other insurers. Premiums can also rise for reasons that apply to everyone, such as higher repair costs. Insurers must also make it straightforward to switch off automatic renewal.

Insurers price on risk, so accurate details matter both for the quote and for any future claim. Before you compare, check each of these against your real circumstances:

• Annual mileage — an honest estimate based on last year's driving, not a guess
• Occupation — the job title that accurately describes what you do
• Where the car is kept overnight, such as a driveway, garage or the street
• Named drivers — adding an experienced driver can change the price, but the main driver must be the person who drives the car most
• Whether you use the car for commuting or business as well as social use
• Any security devices fitted to the car

The total excess is the compulsory excess set by the insurer plus any voluntary excess you choose. A higher voluntary excess usually lowers the premium, but you'd pay the full total if you claimed, so it may only suit you if you could comfortably afford it.

It's worth quoting for comprehensive cover as well as third party, fire and theft, because comprehensive isn't always the most expensive option. Check which add-ons, such as breakdown cover, a courtesy car or legal expenses, are already included before paying extra, and whether you already have breakdown cover elsewhere.

Paying monthly often costs more overall than paying in one go, because many insurers charge interest on monthly instalments. The renewal documents should show the cost of both options, so you can compare the total amount payable.

If you're a newer or younger driver, a telematics (black box) policy that prices on how you drive may be an option to compare alongside standard policies. Read the terms carefully, as some have conditions such as curfews or mileage limits.