Car insurance companies beware ! If you don’t ante up the insurance premiums you offer to your customers, chances are highly likely that they will be switching providers before long.
A recent survey conducted by a reputed car insurance comparison website has concluded that the number of car owners who switched their car insurance provider this year has witnessed a significant increase as compared to the last year. The poll also revealed that, as of December 2009, just 22% of car drivers had been looking about for lower car insurance quotes and switching their providers. However, this number took a drastic rise in October 2011, where the figure had considerably increased to 34%. This indicated a 50% rise in the number of UK citizens who were shopping about for better car insurance providers, comparing quotes from different companies, and finally settling on the best offer, even if that meant making a switch from the previous insurance provider. Also, the increase in the number of people willing to compare car insurance quotes had taken such a massive windfall merely in the space of two years.
It appears as though the public has finally gotten its act together on the fact that car insurance comparisons and subsequent switching is only in their best interest and will help them save precious pounds. However, the message hasn’t percolated down to other financial products such as energy suppliers, banks or broadband. The fact that about a third of UK citizens don’t switch their providers for even one of the top 20 financial products lies as a testament to this claim.
However, industry experts believe that the popular opinion of availing car insurance only after undergoing a thorough look-around for the cheapest car insurance premiums is one of the major underlying factors behind the car insurance comparison trend.
Car Insurance is a financial product that almost 77% of Britons tend to shop around for using price comparison websites, only to find the cheapest rates on their annual car insurance premiums. This percentage is followed by home insurance, which has 22% homeowners switching insurance policies after comparisons.
Industry experts have urged the public to start utilising the benefits that a range of providers can offer by comparing the prices and privileges for the services that are being offered. They also say that people who compare everything, from their telecoms supplier to their mortgage provider, stand to save amounts reaching to thousands of pounds.
To prove their point, the researchers from the same car insurance comparison website executed another research to find out how much people ended up saving by comparing service providers. They found that people using comparison sites for car insurance typically saved about £393.67, homeowners switching home insurance policies saved £125.33 and a whopping £557.33 was saved on energy tariffs by those willing to shop around for better providers.