Financial Planning – UK Drivers Found Desperately Seeking Insurance Savings

- One in five drivers would leave their insurer for a saving of less than GBP25
- Shopping around for car insurance could save drivers GBP348 on
average

A fifth of cash strapped drivers (22 per cent) would be persuaded to ditch their current car insurance provider if they could save just GBP25 or less according to research by MoneySupermarket.com [http://www.moneysupermarket.com ][1].

Britain’s number one comparison site also found that an average saving of just GBP54.33 would be enough to entice motorists to switch providers. The research also showed that one in four drivers automatically renew car insurance with their existing provider rather than shop around, and they would only be tempted to switch for a saving of at least GBP78. However, shopping around at renewal time, rather than sticking with your existing provider can provide savings far in excess of this figure – MoneySupermarket customers save on average GBP348!

When looking regionally, drivers in the South West are looking for a saving of GBP43.04, compared to Londoners who say they would need to make a saving of GBP71.88 to make them switch their car insurance policy. The research also found differences between different age groups; those over 55 would want to make a saving of GBP50.33 in order to make the switch worthwhile, while those aged between 18 – 34 were on the hunt for savings to the tune of GBP61.77.

Pete Harrison, car insurance expert atMoneySupermarket.com [http://www.moneysupermarket.com/car-insurance ] said: “British motorists are really feeling the financial strain and are desperately looking for ways to cut costs, so its unsurprising our research has found one in five drivers are only looking for savings of GBP25 on their car insurance premiums to justify the move to a better value premium. Those drivers who are unconvinced of the merits of shopping around, and automatically renew their car insurance, could achieve above and beyond their desired saving by taking the time to scour the market. The average saving to be made by searching the car insurance market online at MoneySupermarket is GBP348, so motorists could in fact save themselves GBP293 more, certainly a welcome surprise to those who doubt the savings that can be made.”

The research also reveals motorists’ main motivations for switching car insurance providers. Unsurprisingly, price takes the top spot; over two thirds of drivers (69 per cent) would switch car insurance providers if they found a cheaper policy with the same level of cover or better. A further seven per cent of drivers would switch for added incentives such as a cash back offer, free breakdown cover or a gift voucher. Improved customer service was not seen as a priority, with only two per cent of drivers stating this would be a reason to change providers.

Pete Harrison, continued: “With motoring costs continuing to rise, and the price of car insurance making up a high percentage of that cost, it makes sense that getting a cheaper deal is the main motivation for drivers to switch their car insurance. Drivers can help to mitigate these costs by getting online and comparing policies to see what prices are on offer, It only takes a few minutes, so consumers should do their research to find the best deal for their situation and make the switch to start saving.”

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