One new research survey has discovered that while approximately 56 per cent of motor car insurance customers will continue using their current provider every year, the retention rates for several car insurance companies can vary quite widely.
According to the 2010 Customer Satisfaction Study for the UK car insurance industry conducted by J.D. Power and Associates, 4 out of every 5 policyholders will renew their insurance cover with some of Britain’s highest-performing insurers, while other companies struggle to retain one out of every three of their customers.
The top five car insurance groups in the UK were revealed to be, from bottom to top, Swiftcover, Diamond, Sheilas’ Wheels, LV=, and finally RSA in the top rank as discovered by the marketing information firm.
With 44 per cent of those surveyed switching from one insurer to another within the past 12 months, the study also made the suggestion that nearly £3.5 billion in insurance premium payments have been up in the air.
The study additionally found that while overall retention and satisfaction levels seemed to be effected positively by bundling insurance policies, 62 per cent of those surveyed stated that they used their insurer just for their car insurance cover.
Among those customers who do bundle, home insurance and breakdown/roadside assistance cover are two policies that were most commonly added.
Other key trends highlighted by the study’s findings indicate that insurer satisfaction has a tendency to considerably decline while within the first 12 months of service before recovering gradually over time, and that around 9 per cent of car insurance policyholders filed a claim within the past year. Of those 9 per cent, 3 out of 4 of them went on to renew their policy at the end of their term.
The research conducted by J.D. Power and Associated was based on a survey of just over 5,000 car insurance policyholders.