New Motor Insurance Report – Nine-in-ten Drivers Have Insurance
17 Jun 2019
89% of Drivers have Motor Insurance
Around 80% of consumers are Drivers, defined as individuals who either own a car or have use of a car owned by someone else. Only around nine-in-ten Drivers (89%) have motor insurance, with uninsured Drivers representing those who are driving illegally without insurance, those whose cars have SORN status, children whose insurance may be fronted by their parents and don’t consider themselves as “owning insurance”, and those who use company cars for personal purposes with the car insured by businesses.
If it wasn’t compulsory one-quarter of drivers might not buy motor insurance
Most insured drivers are risk averse (want insurance cover) and are happy with the cost of their insurance, but around one-quarter of Drivers would take risks (go uninsured) if they could: 26% of Drivers dot not think it is better to be safe than sorry when it comes to insurance and while 82% of policyholders do not see their insurance as a waste of money, 17% do.
Most policyholder self discover motor insurance but many could do with more help
65% of policyholders have consulted a price comparison website in the previous two years when searching for insurance and most favour using information sources which allow to them to self discover and self purchase policies. However, when buying and arranging motor insurance, just over one-third of policyholders need significant assistance.
While online is growing in the motor insurance market, most policyholders adopt a flexible approach
When searching for and selecting motor insurance, almost half of motor insurance holders show a preference for carrying out some or all of their customer journey online. However, a majority of consumers, while they may shop online, adopt a flexible, agile approach to arranging insurance, showing a willingness to research and buy insurance via both online and offline channels.
The renewal notice often starts a policyholder’s customer journey. Nine-in-ten policyholders are repeat purchasers, meaning they already own insurance when they start their customer journey. Most repeat purchasers are aware of their renewal notice. During their last customer journey, half of policyholders eventually renewed with their existing provider, around four in tend switched provider and around one-in-ten were entering the market for the first time.
Renewing motor insurance is not a passive action
Because policyholders have renewed with an existing provider, this does not mean they have passively accepted a renewal offer. Over seven-in-ten policyholders who renewed, searched for alternative policies before renewing and a similar proportion remember seeing the previous year’s premium on the renewal notice. Seeing the previous year’s premium tended to encourage more searching. In addition, policyholders who renew with an insurer often haggle over price first. In other words, they not only search for alternatives, but they then also haggle with insurers to get a better deal, even if they are unable to find a better alternative.
The motor insurance report
This report examines the motivations, experiences and opinions of the UK motor insurance customer. It identifies and analyses consumer attitudes towards motor insurance, looks at the claims experience of drivers, and investigates why they choose one route to purchase over another. In addition, it will explore how price sensitivity is impacting the market. Essentially, the report studies the policyholder’s customer journey from the point where they recognise a requirement to make a purchase to the point when they are a customer and may run into issues like claiming or registering a complaint.
This report (87pp) and the detailed dataset of all survey results with a demographic analysis is available directly from IRN Research, priced at £2,500 (£3,000 including VAT).