Insurance switching soars
Car insurance and home insurance switching levels have leapt significantly in 2017, according to new figures from leading comparison site GoCompare.
GoCompare’s latest switching report, reveals that the number of people in the UK who switched their car insurance increased from 22% in 2016 to 27% in 2017. The increase in switching activity has been largely attributed to rising premiums in the car insurance market which reached record levels. Average motor premiums rose by nine percent in 2017, according to the ABI, adding an extra £40 to the average motor insurance policy.
Similarly, the number of people switching home insurance in 2017 increased from 17% to 23% of UK adults. According to Consumer Intelligence, premiums for home insurance also increased by 8.5% in the year to October 2017.
The report revealed that 47% of people switched at least one of the top 10 financial products in the last 12 months, with car, home insurance and household utilities the most likely to be switched.
However, mortgages were the only other product sector to see an increase as 43% of people admitted they hadn’t switched any of the top 10 most common financial products. The research also found that just under a fifth (19%) have never changed provider for any of these products.
GoCompare’s Switching Report also looked at the average length of time people stay with the same car and home insurer and energy provider. It revealed that, on average, customers stay loyal to their car insurer for 2.3 years; home insurer for 2.5 years and gas and electricity supplier for 2.9 years.
Matt Oliver from GoCompare commented, ‘In 2017 car insurance premiums hit a record high and the cost of home cover also increased, and it seems this was the cue for many people to shop-around and switch to a better deal. We know from our own research that nothing makes loyal customers head for the exits quicker than an insurance renewal letter telling them their premium is going up.
‘Customers have woken up to the fact that, where insurance is concerned, loyalty doesn’t pay.’