50% of consumers own breakdown cover
28 Apr 2021
Motor Breakdown Market Worth £1.8 billion
In 2021, 50% of consumers said they owned motor breakdown cover, which is up on the 46% that owned in 2019. This finding comes from the IRN Research Motor Breakdown Consumer Research Report 2021,The total market (B2C and B2B) was worth almost £1.8 billion. The percentage of consumers who own motor breakdown cover tends to rise with age, social grade and household income. This in part reflects the likelihood of these groups owning or having use of a car. The market in the past year has been hit by COVID-19 and declined in value by 1%, with the B2B market hit harder than the B2C market. The Pandemic is expected to leave a lasting legacy on the market in terms of reduced car use for business and commuting purposes. Between 2020 and 2025, the total market is expected to grow by 18% with the consumer market rising more strongly by 20%. Most of this growth will take place between 2020 and 2022, in the post-pandemic recovery phase, after which growth will settle down to a more normal pace.
Each year policyholders effectively start a new customer journey and receiving the annual policy renewal prompt tends to kick start a new journey. Each year, over eight-in-ten motor breakdown cover holders are existing policyholders, and their choice comes down to either renewing with an existing provider (over half renew each year) or switching from one provider to another (over one-quarter switch each year). Just over one-in-ten consumers embark on a new customer journey each year, i.e., they are first time buyers.
The Motor Breakdown Report
This report examines the motivations, experiences and opinions of the UK motor breakdown insurance customer. Motor breakdown cover is defined as insurance which covers the cost of roadside assistance in the case of a car breaking down. This report will identify and analyse consumer attitudes towards breakdown insurance, look at the claims experience of drivers, and investigate why they choose one route to purchase over another. In addition, it will explore how price sensitivity is impacting the market. Similar research was run in 2019 and comparisons between results in 2019 and 2021 are also made.
For this report, IRN Research commissioned research from MIS Group’s UK panel. The research was structured so that a nationally representative sample of 2002 consumers aged 18+ were asked if they owned a motor breakdown insurance policy. This generated 1004 individuals who owned a motor breakdown insurance policy. The similar survey run in 2019 generated responses from 938 individuals with motor breakdown cover.
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