Martin Lewis explains how reduce cost of car and home insurance

During the latest episode of his ITV show The Martin Lewis Money Show, Martin revealed there are five key steps to follow that could end up saving you hundreds.

And while he was talking about car insurance, Martin said many of the same ideas apply to home insurance.

And following the guidance could reduce the price of insurance by almost half when it comes to annual renewal.

Martin Lewis issued the advice during his Money Saving show on ITV

This is what the finance guru said:

When to renew

It's best to apply around 21 days in advance before renewal.

Although even if you aren't due to renew anytime soon it's still worth a check according to Martin.

Martin also warned not to leave it to late either as those who get quotes at the last minute end up paying £546 more on average than those who get quotes at the cheapest opportunity.

On the show Martin said: "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].

• SEE ALSO: ​Martin Lewis' warning to shoppers who pay with cash

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

"There is a reason. Insurance pricing is based on risk. And 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."

Do not auto-renew

Auto-renewal may be convenient but it comes at a cost as according to Martin's website "insurers rely on people's laziness to jack up renewal prices".

Instead, you're better of using price comparison sites to find a cheaper option.

Martin said it's best to apply around 21 days in advance before renewal.

Martin said: "Price walking is the fact that when you go to an insurer if you stick with them, each year they walk the price up by £20 or £30. So the longer you're with them the more you pay."

Check Direct Line

After checking price comparison sites compare those to Direct Line.

They aren't on price comparisons websites but can sometimes offer you a better deal.

Martin suggested a range of other tips that can also be used to improve your chances of cutting costs.

First by using trial and error you can see if comprehensive cover may be cheaper than third party insurance.

• SEE ALSO: Is it cheaper to switch heating on and off or leave it running?

Changing your job description legitimately could cut costs just by tweaking the description.

See if adding a responsible additional driver to your cover could also cut costs even if they don't drive the car often.

Double-check once you get the cheapest insurer if they offer cashback.

Multi-car policy

If you have more than one car you'll get plenty of good offers for multicar policies.

Unfortunately these often get taken away at renewal, so check at renewal is you're better with a multicar policy or as separate policies.