New research claims that despite all the press and media coverage of the benefits of shopping around for a new motor quote on renewal – one in five drivers still only obtain one quote.
*This is despite the fact that of those motorists who have been with their current insurers for three years or more (34% of motorists), over a third of them (37%) claim that their premiums increased.
Although this is initially surprising, UK consumers have a well researched reluctance to change their personal finance and insurance providers. Ask yourself how many times you have changed your bank in the last 5-10 years and you can understand the type of mentally which prevails.
The research indicates that of those motorists who have been with the same insurer for three years or more(1), over a quarter of people surveyed (projected to 4.19 million) said their premiums rose by up to 5%, 1.34 million by between 6% and 10% and over half a million said that their premiums had increased by more than 10%.
It is common knowledge that many motor insurers make the bulk of their profit from customers after the first year. Insurers are smart enough to know that once a customer is on board there is a good chance that they (policyholder) will not change insurer.
Motorists need to be made constantly aware that the UK car insurance market is fiercely competitive and that motorists hold the trump card when it comes to driving a low premium whilst maintaining cover levels.
*Research conducted for Sainsbury’s bank by GfK NOP between 6th and 8th July 2007.