The days of customer loyalty in the car insurance industry are well over, with just 1 in 7 saying they are going to renew with their existing provider.
This is all according to new research about UK consumers in 2017, and if it’s believed, then I think many car insurance companies are going to have to rethink their strategy if they want to keep many of their customers.
It Doesn’t Pay to be Loyal
Do you know what though…this doesn’t surprise me one bit, as I’ve been hearing for a long time, there are many loyal customers getting frustrated with their current providers, mainly due to more expensive policies year upon year.
If just 1 in 7 people are planning to stick with their insurance companies, that’s 39 million people who are going to be looking elsewhere, and in my opinion, the first place they should look is a comparison website.
This is especially true when you consider that price is the main motivator for customers who want to switch car insurance companies, with 78% of people saying that cost is their number 1 priority.
That is why a comparison website is so helpful, because it takes your details and sends them to all of the main car insurance companies, before finding the cheapest quotes.
I’ve talked before about how many of the leading companies seem to take their customers for granted. I mean, how can they expect you to stick around if your policy keeps on getting more expensive? Sometimes I really wonder who is in charge at some of these places. I don’t think common sense is two words they’ve ever heard of.
It’s really good that customers now have more choice than ever before, and more importantly, the ability to get quotes from as many different companies, in the shortest amount of time possible.
The research also went on to show that 6 out of 10 customers will get quotes from at least 4 companies before deciding on which one to go with.
The Customer is King
In a way, we are going through a bit of a car insurance revolution at the moment. The insurance companies have had it too good for too long, but thanks to technology and all of the choice now available, it is putting the customer back in control.
We should start to see cheaper car insurance prices across the board very soon. The car insurance companies will be reluctant at first of course, but once they understand this new marketplace you can be sure they will adapt.
For now though, just make sure you compare as many providers as possible when renewing your policy. Don’t be one of the people who are loyal, because it really doesn’t pay in this industry.