Exact date to renew your car insurance to save £200

The average policy price for new drivers also rose by £14 to £545.

However, knowing when you need to renew your car insurance could help Britons save some extra cash during the cost-of-living crisis.

GoCompare’s Ryan Fulthorpe revealed a way to ensure you get the best value for your insurance.

He claimed motorists can buy a premium up to 29 days before the policy start date.

They can then “lock in” the price quoted on the day.

Fulthorpe told The Sun: "Go Compare data shows that the closer to the renewal date you get, the more you could end up paying.

"Our customers saved over 44 per cent on average by buying their car insurance 27 days before their renewal date, compared with those renewing on the day."

Using the trick could save motorists over £191 provided the average cost of a renewed premier stood at £436 at the start of the year.

Drivers have also been encouraged to use comparison websites to ensure they get the best deal.

GoCompare, Comparethemarket and Money Supermarket all give quick and easy comparisons between insurance providers.

Julie Daniels, motor insurance expert at Compare the Market, added: "Almost one in five motorists who drive less than 4,000 miles per year could save up to £168 on average by swapping to a pay-by-mile policy instead of an annual comprehensive car insurance policy."

Installing a black box can also help cut costs, particularly for young drivers.

Black boxes track driving and can see the policy price fall by as much as 60 per cent if motorists have been on the road for at least a year.

However, motorists can be punished with more expensive insurance policies if they are found to be bad drivers.