Car insurance customers least loyal – is that set to change?

CAR INSURANCE NEWS ROUNDUP: 7 DAYS ENDING 12 FEB 2014:

New research this week announced that Brits are some of the least loyal car insurance customers out there, but could this change with the onset of new tech?

Almost three out of every five British motorists are considering switching car insurance companies in the coming year, according to a worldwide research study published by Accenture. The exact figure – 57 per cent – was a full 17 percentage points above the 40 per cent global average, indicating that Brits are some of the most fickle car insurance customers out there.

Honestly, I can’t say I’m surprised by this news. In fact, the insurance industry asked for this by reserving their best car insurance rates for new customers and hiking rates up for their existing ones. Still, there may be some hope on the horizon for insurers and customers alike that could lead to better loyalty, and the key is apparently new technology.

In fact, a car insurance comparison site recently looked into telematics-based insurance policies and how much they could possibly save drivers, and it looks like you can get discount car insurance very easily – provided you can prove that you’re not a crap driver.

Telematics-based cover uses satnav technology, either through a little unit that you fit under your bonnet or a smartphone app that you run whilst in the car, that keeps a close eye on your motoring habits. If you drive like a boy racer, you’ll get some high insurance rates – but drive responsibly and you’ll get some nice discounts that could keep motorists coming back year after year to the same insurer.

Young motorists in particular can win big if they switch to a telematics-based policy. With cheap car insurance for young drivers so absolutely impossible to find, it’s noteworthy to highlight that the comparison site’s research found younger Brits could save annually around £438 on average with telematics cover – but only if they drive responsibly. Still it’s a small price to pay to slash your insurance bill by more than £400, if you ask me!

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