The money-saving expert’s comments come as the cost of fuel at the pumps goes up
Martin Lewis has shared a straightforward tip for drivers looking to cut costs as vehicle ownership expenses continue to climb. The US-Israeli military strikes in Iran have caused oil and gas prices to surge.
This not only raises the prospect of higher household energy bills, but also means steeper costs at petrol stations. Oil has now reached $117 per barrel, approaching the $119 peak seen following Russia’s invasion of Ukraine. Fuel prices have climbed to their highest levels in almost three years this week, with increases ranging from 9.8p to 20.3p per litre.
According to the RAC, drivers are currently paying 142.62p per litre for unleaded petrol and 162.66p per litre for diesel. One positive development for motorists is that car insurance premiums have fallen over the past two years.
Financial expert Mr Lewis offered valuable guidance on ITV’s This Morning regarding how to reduce car insurance costs. Host Cat Deeley read out a viewer’s query which stated: “My granddaughter is 21 and currently pays £68 per month for her car insurance. A few months ago someone drove into her car, writing it off and injuring her.
“The other driver admitted responsibility and the insurance claim was settled, except for a personal injury claim that the insurance company recommended her to pursue, which is ongoing. Her insurance renewal quote has gone up to £178 per month, over double. Why?” Mr Lewis replied: “Wow, so it’s gone up from £800 a year to £2,000 a year. Look, the why is quite simple but you’re not going to like it and I don’t like it. The why is that insurance quotes work on statistical risk, actuarial risk. So they say, what is the risk that this person will make another claim?”
“And even though this was no fault of your granddaughter’s, what they do is sometimes the fact that she has then been involved in an accident and there has been a claim, even though it wasn’t her fault, they say statistically that means she’s more likely to be involved in an accident again in future, and therefore they put the premiums up on the back of it.
“It feels, and is, incredibly unfair, but it’s how insurance works. Now, the first thing I would say and-you know-is I would be absolutely going to see if other insurance companies have the same attitude. Do not just renew, I mean no one should be just renewing anyway, car insurance prices are coming down, if nothing had happened you should be expecting your price to drop.
“You want to be going to get renewal quotes from a combination of comparison sites about 21 to 28 days before your renewal quote, that’s the sweet spot and that can bring your price down. And you want to be looking, you know, other insurers may not have the same attitude to that risk, so you may be able to get a much cheaper policy elsewhere.”
The cost of insurance?
Consumer champion Which? reported in February that car insurance premiums had climbed for the first time in 12 months, based on data from the Association of British Insurers. The typical premium between October and December 2025 stood at £559 – representing an £8 increase on the prior quarter, though still £62 lower than the corresponding period in 2024.
Nevertheless, motorists are still paying less than they were previously, with the average annual policy costing £635 at the start of 2023.
Insurance premiums remain elevated due to rising repair costs in recent years, with contemporary technology such as built-in sensors and cameras pushing up expenses.
