A MAN has explained how he saved £618 on an essential bill thanks to an easy Martin Lewis tool – and anyone can do the same.
People in the UK have seen the prices of rent, energy, and food increase dramatically due to the cost of living crisis.
Car insurance can be pricey but there are ways to get it cheaper[/caption]This has forced Brits to try and find more ways to save some cash.
On his Money Saving Expert website, Martin Lewis often shares tips on how to do just that.
The latest MSE newsletter mentions a man named Marc who used the Compare+ Car Insurance tool to find a cheaper alternative to what he was paying.
He explained his car insurance renewal increased by £800 for his 14-year-old car despite 30 years of no claims.
The huge increase, of over 300%, encouraged Marc to find a better price for his car insurance.
By simply using the tool on the MSE website, he was able to find a like-for-like policy for just £182.
This meant Marc could save £618, as he explained in an email to MSE: “My car insurance renewal increased by the princely sum of £800 (for a 14-yr-old car, and I’ve 30yrs’ no-claims), roughly a 305% increase.
“Using your Compare+ Car Insurance tool, I got a like-for-like policy for £182 [a saving of £618]. So I’m taking the Mrs to lunch courtesy of your good selves!”
Car insurance rose a further 34% on average in the year to May 2024, analysts Consumer Intelligence said.
MSE says car insurance is now up around 70% since 2021.
But there are ways to save hundreds of pounds – and one of these is to switch to a cheaper insurer.
According to MSE, customers should never simply auto-renew their car insurance, but when renewal time arrives, they should check comparison sites to see if there’s any better deal around.
Martin Lewis and his team built the Compare+ Car Insurance tool to help customers find cheaper car insurance online.
All you need to do is fill in a questionnaire for comparison site MoneySupermarket.com.
You can then follow MSE’s tips including the cheapest legit job title and whether waiting a day or two could reduce your price and more.
The tool will then show your cheapest quotes from MoneySupermarket and other comparisons.
It will also use your data to check whether Direct Line, which isn’t on comparisons, is worth checking.
The tool also offers tips such as whether it’s worth checking multi-car policies, adding additional drivers to your policy, or paying annually rather than monthly.
If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what’s out there.
These websites let you tailor your searches to an account type that suits you.
There are three types of savings accounts fixed, easy access, and regular saver.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals.
These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
Another customer who used MSE’s tool said: “Thank you for this tool. My daughter (20) just passed her test.
“We liked how easy it was to tweak things (start date, job description, adding second driver) and see the cost impact.
“She now has a year’s insurance at under £60 a month, which is amazing, as well as a new life skill and the confidence that she’ll be able to sort out her insurance next year with the tool.”
The latest MSE newsletter also shares some of the main tips for customers who are looking for cheaper car insurance deals:
Speaking on his ITV show about the best time to renew your car insurance, Martin said: “If you are near your renewal, getting quotes three weeks before may halve the costs.
“We ran 80million quotes to see exactly how the prices change.
“This isn’t about renewal quotes…this is about going to get new quotes to see if the price is cheaper in the run-up to your renewal date.
“It starts to drop at around four days but you get into the sweet spot around three to four weeks before.
“It bottoms out at exactly 23 days and the price starts to rise.”
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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