I am sure that our UK readers are all familiar with the TV campaigns run by motor insurance comparison websites. From CompareTheMarket & MoneySupermarket to Confused.com we’re all bombarded.
Just the mention of a Meerkat or an Opera Singer will get most people reeling off slogans for these brands, so we might naturally assume the ads have been a colossal success – but have they?
At RiskHeads we like to dig a little deeper. Research we uncovered from one of the major players in this area found that 19% of policyholders automatically renew their motor insurance with their existing insurers rather than shopping around for a better deal.
11% of these motor insurance customers don’t even think they can find a better deal and 8% (which is a staggering 2.7 million motorists) will accordingly automatically renew because “they can’t be bothered” to see if they can save money.
All this means that on average policyholders stay loyal to their insurers for 2.6 years with the older motorists (over 55) staying for around 3.3 years.
And yet the saving these sites can offer can be huge: even on average it’s in the region of £270.
So why don’t policyholders look around for a better deal?
The consensus answer to this would seem to be Apathy. Most people lead increasingly busy lives and the thought of entering yet more personal details into a website with no certain return on their time investment is distinctly unappealing.
The insurance relies very heavily on this: even though there are savings to be made many people will just not take the time to shop around. If this were not the case, premiums would have to rise all round in order to make insurance profitable again.
Motor insurance premiums are likely to rise by something in the region of 30-40% this year following very bad losses due to two consecutive bad winters. It will be interesting to see whether this encourages more shoppers to reach for the mouse.
But today, despite the blanket advertising it would seem that for the most part the message is still not getting out there.
For our consumer readers it only takes a few minutes to make sure you really have the best value policy to suit your needs, so our advice would be to get searching!
Let us know what you think! Are you an aggregator or a confused policyholder? Should insurance brokers be jumping on the comparison website bandwagon somehow?
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