Car Insurance News

Are car insurance customers too loyal? - 26/11/2007

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Brand loyalty among car insurance customers could mean they are losing out financially, according to one price comparison website.

Research from Tesco Personal Finance found that two-thirds of car insurance customers have not switched their policy within the last 12 months, while 43 per cent have been with their current car insurance provider for at least three years.

Some seven per cent of respondents claimed to have never changed their car insurance provider - with those who have not switched tending to prioritise features and level of service rather than merely price.

Although 71 per cent of people who had changed car insurance provider in the last year named price as their key motivating factor, 56 per cent of those who had not changed firms in the last three years cited cost as the most important aspect of their car insurance deal, a figure that falls to 24 per cent among those who had stayed with the same deal for more than a decade.

"This suggests that the majority of motorists are more concerned with getting the right cover for their individual needs, than getting the cheapest price," said Peter Dingle, managing director of Tesco's price comparison service.

Meanwhile, Liverpool Victoria Friendly Society has recommended that car insurance customers keep their vehicles clear of clutter to minimise theft and accidents.

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