Car Insurance Loyalty

11. 05. 2008 posted in: Car Insurance News 2008

How loyal are car insurance customers and indeed the insurance companies themselves

A recent moneyexpert.com survey has revealed that more than 6 million motorists have changed their car insurance companies in the past 6 months. The research revealed that fourteen percent of the motorists had changed their motor insurance policy at the time of renewal for a cheaper alternative elsewhere.

We have reported on these issues before, it clearly appears that customer and indeed provider loyalties are becoming something of the past. In a strange twist to how car insurance companies used to budget the costs of motor insurance it would appear that some are now having to charge more to existing customers in order to cut costs on introducing new customers at the front end.

Traditionally existing customers got a better deal simply because the sales acquisition cost was removed. With the advent of the car insurance price comparison companies the challenge has become a 360 degree issue.

We now know that a growing number of motorists will receive their annual renewal notice and then jump straight onto the internet to find a cheaper option from one of the insurance aggregators services.

With current estimates indicating that 30 percent of car insurance consumers are shopping around it is no surprise that we have an evolving market place that is inevitably going to incur winners and losers.