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Why delaying putting insurance in place means you’ll often pay more

Why delaying putting insurance in place means you’ll often pay more

May 12, 2021

No one wants to pay more for their insurance than they need to. Whether it’s your car or home insurance, or protection such as life insurance and critical illness cover, getting the best deal can save you hundreds or even thousands of pounds.

One way you can reduce the cost of your insurance is to be prepared, and not delay putting your protection in place.

Financial expert Martin Lewis of Money Saving Expert has recently shared a tip that can significantly reduce the amount you pay for your car insurance. It’s a simple hack that could potentially reduce your insurance cost by more than £500 – and it all comes down to timing.

And applying Martin’s tip to other types of insurance could also save you a tidy sum. Read on to find out more.

Delays can make your insurance more expensive

According to Lewis, when it comes to renewing your car insurance, if you delay buying the cover it can be costly. The broadcaster says that the ideal time to renew is between three and four weeks before your existing cover expires.

If you wait to buy cover, it could cost you dearly. Lewis says that those who get quotes at the last minute end up paying £546 more on average than those who take out their cover earlier.

Lewis says: “If you try and get a quote 30 days before, the price is pretty high, then it drops pretty rapidly – the sweet spot is around 21 days but anything around three or four weeks [in advance is worth trying].

“Then it goes up and up until we’re talking about renewing at the last moment, which is nearly twice the cost.”

This illustration below from Money Saving Expert shows that, if you renew your car insurance 21 days before the renewal date, the cost of your cover is likely to be much less than if you wait.



Source: Money Saving Expert


So why does insurance become cheaper if you take it out earlier?

It’s all about risk. Lewis explains: “If you are the type of person who leaves it till the last minute, their risk charts show you’re a more risky person so they’ll charge you more. So, play their risk odds against them and renew earlier in that sweet spot of three to four weeks.”

Interestingly, your motor protection isn’t the only type of insurance that is likely to become more expensive if you delay taking it out.

The last year has highlighted how important it is to ensure you have the right life and health insurance cover. By putting the right protection in place you’ll have the peace of mind that you and your family will be financially stable should the worst happen.

And, taking out this cover now rather than delaying it could also mean you’ll benefit from lower costs. Keep reading to find out why.


Life insurance ensures your loved ones are financially supported in the event of your death

Life insurance is there to make sure your family will be financially looked after if you pass away. It gives your family a financial cushion, so they don’t have to worry about paying day-to-day bills at an already emotional time.

Life insurance can be used to:

  • Pay off your mortgage, allowing your family to remain in their home
  • Provide a useful fund for your family that could support your children through university
  • Help to replace your income to ensure your family can maintain their lifestyle.

There are several different options when it comes to life insurance, and our experts can help you to find the right insurance for you. Compare life insurance quotes online and find out just how cost-effective this cover can be.

Learn more about life insurance

Critical Illness cover pays a tax-free lump sum if you are diagnosed with a serious illness

What would you do if you had a serious heart attack, or were diagnosed with cancer? Would you be able to afford to take time off work? Could you maintain your mortgage/rent payment and bills on a reduced income?

Critical Illness cover will provide a tax-free lump sum if you are diagnosed with a serious condition. This might be a stroke, a major heart attack, certain types of cancer, or multiple sclerosis. This money could allow you to:

  • Pay off some or all of your mortgage, or your other debts
  • Pay your bills, enabling you to maintain your lifestyle while you focus on your recovery
  • Cover the cost of treatment, potentially allowing you to seek private medical care
  • Adapt your home to meet your needs.

Again, we can help you find the right protection for your needs. We work with dozens of the UK’s leading insurers to find the ideal cover for you.

Learn more about Critical Illness cover


Why delaying taking out cover can make it more expensive

There are many factors that affect the cost of life insurance and critical illness cover. These include:

  • Your age
  • Whether you smoke or drink
  • Your health
  • Your family medical history
  • Your occupation.

Age is one of the most important factors. In simple terms, the older you are, the more likely you are to be diagnosed with a serious illness, or die, within the term of your policy.

So, it follows that the older you are when you take out cover, the more expensive it will be. This illustration from Legal & General shows how the cost of life insurance rises as you get older.


Waiting ten years from age 28 to 38 increases the cost of your life insurance by more than 50%. This is because, from an insurer’s point of view, there’s an increased chance the policy will be claimed against.

There are two other reasons why you shouldn’t delay when taking out protection:

  • Delaying cover increases the risk of you becoming ill before you are insured. This means that the insurer might not cover you for this condition in the future. If you had taken cover out when you were younger and healthier, your policy may have paid out on diagnosis of such a condition.
  • It’s not just your health that insurers consider when deciding how much your cover will cost. They will also consider your family’s medical history. So, if your parents, for example, are diagnosed with certain conditions before you take out your cover, the insurer is likely to take it into account and therefore may increase premiums on your insurance.


Get in touch

There are many reasons why it’s beneficial for you to avoid delays when taking out insurance. It can reduce the cost of cover, offer protection against any future event, and give you and your family peace of mind at low cost.

As life insurance and Critical Illness cover experts, we can help you get the protection you need at the best possible rate. We work closely with dozens of the UK’s leading insurers to find the best price, and we even take less than the standard rates of commission so we can pass on these savings to you.

If you have delayed, and you now have a pre-existing medical condition, we can also help. Our experts have wide experience of working with customers with a range of medical conditions, so we can help you get the protection you want even if you’ve experienced physical or mental health issues in the past.

Get in touch or compare life insurance quotes online now.



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