More than three quarters of motor insurance customers shopped around, survey finds
Customers are more likely to shop around for insurance than for other products, according to a survey commissioned by the ABI.
The survey of 2,065 UK adults, conducted by Populus, found that 77% of customers buying motor insurance shopped around, compared with 61% buying a mobile phone contract.
The ABI said the survey showed that consumers are actively engaged when buying insurance products and recognise the value of shopping around.
Respondents who considered five or more alternative suppliers when buying an insurance product included:
- 36% for motor insurance
- 30% for home buildings or contents insurance
- 28% for travel insurance
This is much higher than buying other personal finance products. Respondents who looked at 5 or more alternative providers was only:
- 9% buying a new mobile phone contract
- 12% looking for a current account
- 16% buying a mortgage or personal loan
People shop around for insurance products using a variety of different channels. Based on ABI member data:
- 36% buy directly from a provider
- 36% use a broker or independent adviser
- 11% purchase through banks and building societies
- 11% buy from utilities, retailers and affinity groups
- 6% use company agents and other intermediaries
ABI director of general insurance policy James Dalton said: “This survey proves what a competitive market general insurance has become.
“It’s great to see that consumers are carefully considering their options and are looking around for the best deal when buying cover. With motor insurance costing an average of £379, and home and contents costing an average £290, the insurance market is highly competitive, so it’s important that consumers understand the importance of shopping around.
“With more than three quarters of people shopping around when buying motor, home, and travel insurance, consumers are taking advantage of the wide variety of ways to find the best deal to meet their needs.”
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