Small players in car insurance market on the verge of extinction

Number of price comparison sites is expected to fall in coming years. A recent research revealed that the underwriting losses suffered by car insurance market are to be held responsible for the crunch in market. This leaves small insurers unable to compete with the big players.

The only source for expansion is through the big player entering this market with big marketing budget. At the present, aggregators are in small numbers and are dominating the market. The barriers to enter the market with demanding and significant advertising spend leave small players incapable to compete unless they focus on the particular niches.

Five leading car insurance comparison sites have enhanced the combined TV advertising spends by around 90% in 2008 to around £80 million, representing almost 2.5% of the total Television advertising. The ability to be able to advertise and become a big name is the key. The research further showed that around 66% of the consumers do not purchase their car insurance from unfamiliar brand. They like to buy their car insurance policy from the brand that is known and is big enough to trust. The basis of trust is basically the recognition of the insurance company.

In the age aggregators, creating brand awareness is very important. Aggregators have been successful in offering price transparency to their clients at this time when price is an important element for internet buying. The user friendly access and navigations adds on to their popularity. The innovative advertising campaigns can help the small players in the industry to survive and gain the trust of consumers. To avoid getting eaten by the big players in the car insurance industry, it is better to look for out the box campaigns for promoting the business better. By creating a place for themselves in the industry, they can gradually rope in clients for their business.

Get low cost insurance when you use car insurance comparison sites online to compare insurance quotes.