Don’t shop around for insurance? You may lose out - Car insurance - News - Moneyfacts

News

Don’t shop around for insurance? You may lose out

Don’t shop around for insurance? You may lose out

Category: Car insurance

Updated: 28/11/2014
First Published: 28/11/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

We're often reminded of the importance of shopping around for insurance, but unfortunately, it seems that not everyone wants to take heed of the advice. Research from Consumer Intelligence has found that 50% of consumers would prefer to stay loyal to their insurance provider, but if they do, they could be losing out.

Comfort is key

The survey suggests that many people simply don't want to shop around, perhaps because it takes too long, or they're not sure what kind of service they'd receive if they went elsewhere. They'd much rather stay put, stay comfortable, and build long-term relationships with their insurer, and as such, Consumer Intelligence is calling on the industry to make this a reality.

Ian Hughes, of Consumer Intelligence, said: "Insurance consumers are inherently the same. They aren't all eager to leave as soon as they can. Bottom line, insurance isn't as interesting to consumers as it is to insurers. They would rather have a fair value relationship with a provider who is there for them in a crisis. Other than that, there are other far more important things for them to spend their time and energy on."

Price hikes on the horizon?

Unfortunately, as it stands, shopping around is the only way to avoid premium price hikes. Loyalty doesn't appear to count for much in the industry and providers are often accused of rising prices far too much, but in the process, they lose valuable customers. And, those hoping to stay with their current provider without paying a fortune could be in for further disappointment, as additional figures reveal that average car insurance premiums are heading upwards.

The latest Tiger Watch price monitor has revealed that, despite average premiums gradually falling since the peak of 2011, the tide is starting to turn. Premiums are still around 5.3% lower than they were last November, but on a monthly basis they've increased by 4.3% – the third consecutive monthly rise.

"We have seen a lot of volatility in the market in 2014," said Andrew Goulborn of Tiger. "It does appear, however, that the underlying trend for the last three months has been upward, and this could well continue as we head into 2015." The report noted that there are considerable changes between demographics, but as ever, it pays to shop around to get not only the best price, but the best level of cover for your needs.

Don't lose out

If you don't want to be caught out by rising prices, it's time to get in on the comparison action. Don't stay loyal without shopping around first, so use our search tool to see if you can lower your premiums and beat the price hikes.

What Next?

Compare Car insurance quotes

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Black Friday sees increased motor incidents

Today can be a day of big savings, but it could also end in tears, as research has revealed that motor incidents were up by 8.5% on Black Friday last year. It’s therefore extra important to keep an eye on traffic today, not just on bargains.

Whiplash crackdown could cut car insurance costs

Whiplash claims have rocketed in recent years, and they’re driving up the cost of car insurance. So it’ll come as welcome news that the Ministry of Justice is stepping in, and will hopefully reverse the trend.

Be extra cautious on the roads today

Today may be Halloween, but it’s also the first Monday after the clocks go back. According to Admiral, this traditionally sees a higher number of incidents on the road, and the insurer is urging motorists to exercise extra caution as a result.
 
Close