Martin Lewis, 47, appeared on ITV’s The Martin Lewis Money Show this evening. On the programme, the Money Saving Expert showed Britons how to to get the best deals possible on car insurance policies, which are some of the biggest bills to hit people’s pockets.
SORN stands for Statutory Off Road Notification.
It’s used to tell the DVLA that your car isn’t parked or being used on public roads.
Martin revealed that the DVLA has done that in order to keep a record of uninsured drivers.
“We live in an auto-renewal world,” proclaimed Martin on the show.
“[It’s] a world where insurance companies will auto-renew you. So you have continues cover and you don’t break the law.
However, Martin cautioned: “But the problem with that is auto-renewal is a sin!
“It is a money-saving sin, and you should not do it.”
Why should you not auto-renew your car insurance?
The money saving expert explained that auto-renewal happens when you come to the end of your insurance deal. Your insurer will automatically renew your contract with them but that doesn’t mean you are getting the best deal.
“You could be missing out on savings with another provider,” he said.
Martin went on to explain that for the best money saving deal, drivers should compare insurance deals with other providers in advance, but when should you do a comparison?
Martin said: “To get the best price, start comparing 21 days before your auto-renewal.
“The price drops down rapidly from 30 days and around 25 days. Gradually bottoms out at 21 days then starts to rise gradually until just before renewal when it shoots up again,” he explained.
So when it comes to car insurance it pays to “be the early bird that catches the worm”.
The expert explained that the price difference on the day of renewal compared to 21 days before could save a car owner potentially hundreds of pounds.
He explained that companies tend to charge drivers more – when insuring their car late – as they consider them as a “high risk driver”, while people who take their time to look at deals well in advance of renewal are considered to be a “low risk driver” – meaning their insurance cost is much lower.
What else can you do to lower car insurance costs?
According to the Money Saving Expert, there are six steps that a car owner needs to follow to get the best low priced car insurance deal.
Step 1 – Compare multiple compare sites
“Combine comparisons sites, I try to use three, as different sites use different insurers” so using more gives you access to more deals.
Step 2 – Add Direct Line and Aviva
“[Check] Direct Line and Aviva – because they’re not on other comparison websites.”
Step 3 – Blackbox insurance/ Multi-car discount
“It’s especially good for young drivers, if you haven’t found a cheap deal.” He also added: “If there are multiple cars in your home, there is such a thing a multi-car policies which can lower the costs.”
Step 4: Special circumstances? Try a Broker
“If you have any special circumstances for the best deal try a bespoke deal from a broker”.
Step 5: Counter logical savings: Add extra diver/Comprehensive can be cheaper
“Adding a more experienced driver to your insurance policy can bring down the cost, saving hundreds of pounds for some cases. Also some insurance see those who marly select ’comprehensive’ as a lower risk. Bringing down price.”
Step 6: Haggle
“If nothing else works, try and haggle ask your current provider ‘this is the price I have found can you match it?’.”