A financial expert has shared a “ridiculous” trick that could help you save hundreds of pounds on an annual cost. This “bonkers” hack could see you pay far less for your car insurance.

Motor insurance is a legal obligation for driving on UK roads. At minimum, you require third-party cover, ensuring protection should you cause an accident resulting in damage or injury to another person, vehicle, animal or property.

However, it can be a significant expense every year. Luckily, there are measures you can implement to secure the lowest possible premium.

Speaking on ITV’s The Martin Lewis Money Show, Martin Lewis shared a simple way to potentially reduce your car insurance quote. He said: “This is one of the most important things and the most ridiculous things I’m going to say tonight, and there’s a lot of ridiculous things in current home insurance.”

He then explained, with the visual aid of a graph, that the precise day you apply for your car insurance renewal quote makes a big difference. More specifically, he said that applying 26 days before your current insurance runs out is the “sweet spot”.

“The number of days before you get a new policy, which will normally be your renewal date, can massively affect the price of the quotes that you’re getting,” he said. “This is based on millions of quotes.

“So the sweet spot is roughly 26 days before the new policy, but a couple of days either side of that doesn’t really matter. By the way in home [insurance] it’s more here, it’s a little bit earlier, sort of 15 to 20 days beforehand.

“And the price you’re quoted then can, and it doesn’t work for everyone but it works for many people, be nearly half.” “Bonkers isn’t it,” he added.

Martin asked an audience member to guess why this was the case. One responded that car insurance companies might think you are “desperate” for the quote the closer you get to the day your insurance expires.

“You’re sort of right,” Martin replied. “What actually happens is, all of insurance pricing is based on actuarial risk, risk charts, who’s a good and who’s a bad risk.

“The type of people who leave it to the last minute are deemed to be a higher risk than the people who go and get their insurance earlier. So they pay more.

“So even if you’re the type of person who leaves it to the last minute, get it in your diary to try and pervert the system, do it earlier and you can save money.”

During the show they also read out some testimonials from members of the public who had tried this method and got money off. One, Selene, said: “Last year I paid £913 for my car insurance.

“I thought it was because I’m old, I’m 63. Well this year I used your 26-day rule and for the same policy I paid £468 saving me £445 pounds, a 49 per cent saving, thank you so much.”

Another, Nicola, said: “Quoted £555 for car insurance, checked it 25 days before and got it for an amazing £222. Thanks for the fantastic information, Martin.”

Motorists can also cut costs by utilising MSE’s online car insurance tool here.