Brits refuse to trade down on car insurance

Thursday, 11 June 2009 10:26

Comparing car insurance quotes and shopping around is now ingrained for UK drivers, but they are not willing to cut cover.

Research by Datamonitor show despite the pressures of the recession, only five per cent of motorists said they would switch to third-party-only cover to save money, and only 13 per cent said that they would look to reduce their premiums through increasing excess amounts or through reducing the total sum insured.

However, when it comes to saving money on car insurance, 44 per cent of drivers said they actively shop around for better quotes and only nine per cent actively allow cover to rollover.

Liz Hartley, Datamonitor principal consultant for financial services, said: "This is reflective of the open and competitive insurance market that exists in the UK generally.

"It is a buyers' market and, as such, consumers do not believe that they need to compromise when negotiating their insurance policies; indeed, there is almost an expectation of 'more for less' each year."

The search for lowest car insurance prices has been led by price comparison sites, Datamonitor found, with 34 per cent of drivers using them.

This compares with just 23 per cent who use comparison sites for buildings and contents insurance.

"The economic downturn and the high cost of motoring in the UK generally mean that consumers will continue to spend a disproportionate amount of time looking for savings on their car insurance policies," Ms Hartley said.

However, she warned if insurers want to hold on to drivers they need to start focusing their advertising not just on low prices but further benefits.

"At the moment, nearly every car insurance marketing campaign in the UK centres on reduced price, and the essential benefits of the product, such as safety, security and well-being, are lost," she said.

"These messages and the underlying importance of needing to have car insurance have to be re-emphasized, along with the reassurance that, if people do need to make claims, they will be treated equitably and fairly."

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