Research indicates that Australians might be overpaying for car insurance by renewing their policies at inopportune times. Consumer analysts reveal that initiating the renewal process three to four weeks prior to a policy’s expiration can lead to significantly lower premiums. Some insurers, however, take advantage of consumers’ last-minute urgency, imposing higher charges to offset increased claim volumes.
According to Chris Ford from Compare the Market, putting off renewal or choosing a last-minute approach can lead to complications, as the insurer may face additional administrative tasks and potential claims related to accidents. To encourage timely renewals, insurers may offer discounts to those who act in advance.
Data from Compare the Market illustrates notable savings. For instance, a 2025 Ford Ranger shows a price difference of up to 10.2 per cent based on renewal timing. The average premium is quoted at $1,810.88 when starting on the same day. In contrast, waiting one or two weeks to renew results in a lower average of $1,680.67, and opting for four weeks ahead drops the price even further to $1,625.94.
Similarly, for a popular Toyota Corolla, the same-day quote averages $1,690.57, while a proactive approach three weeks prior can yield a reduced premium of $1,614.74.
Ford urges consumers to actively manage their car insurance renewals rather than allowing their policies to automatically roll over. He advises taking the initiative within the three to four-week window before renewal to potentially unlock substantial savings on premiums.