Insurance switching soars - driven by record high premiums
- GoCompare’s Switching Report reveals massive increase in car insurance switching from 22% to 27% in 2017;
- Home insurance and mortgage switching also on the up;
- 19% of UK adults have still NEVER switched any of the 10 most common financial products.
Car insurance and home insurance switching levels 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 9% 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.
|
Rank |
Product switched |
Year to Dec 2017 |
Year to Dec 2016 |
Year to Dec 2015 |
|
1 |
Car insurance |
27% |
22% |
19% |
|
2 |
Home insurance |
23% |
17% |
16% |
|
3 |
Energy provider |
17% |
19% |
17% |
|
4 |
Broadband provider |
11% |
14% |
12% |
|
5 |
Mobile phone |
11% |
14% |
13% |
|
6 |
ISA or savings accounts |
8% |
10% |
6% |
|
7 |
Bank account (current account) |
8% |
9% |
6% |
|
8 |
Credit card |
8% |
9% |
6% |
|
9 |
Land line telephone |
7% |
9% |
8% |
|
10 |
Mortgage |
4% |
2% |
2% |
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. Providers typically use their best deals to attract new customers, so often the only option for existing customers is to go elsewhere. Fortunately, switching is a quick and easy. And by comparing deals on GoCompare customers could save up to £279 on their car cover and £71 insuring their home.*”
For more information on switching financial products visit: http://www.gocompare.com/
GoCompare’s top 5 tips to help people get the best deal on their financial products and household bills:
- Plan ahead: In order to give yourself time to review your arrangements and make sure that you’re still getting a good deal, keep a diary note of key dates including renewal dates, expiry dates of fixed rates or tariffs, the end of introductory offers;
- NEVER accept an insurance renewal or energy tariff change without first checking that the new price you are being offered is competitive;
- As well as comparing prices and headline rates, check the small print of the deal you are being offered. Make sure that you are making like-for-like comparisons and understand all the charges, any penalties, exclusions and terms and conditions you will be required to meet, and that the product is right for you;
- If you’ve signed-up for a product with an attractive introductory rate, make sure you review the arrangement before the end of the offer period otherwise you could end up paying more in the long-run;
- Use a comparison website – they provide quick and up-to-date information on a wide range of financial products and services.
-ends-
For further information please contact:
Anders Nilsson or Martyn John at GoCompare on 01633 654 054 / 01633 654 725
Gordon, Jason or Liz at MAW Communications on 01603 505 845
Notes to editors:
*GoCompare switch and save figures are based on the following:
Car insurance: According to independent research from Consumer Intelligence in September 2017, 51% of customers could save up to £279.42 with GoCompare Car Insurance.
Home insurance: According to independent research from Consumer Intelligence in September 2017, 51% of customers could save up to £70.82 with GoCompare Home Insurance.
On 29 December 2017, Bilendi conducted an online survey among 2,334 randomly selected British adults who are Maximiles UK panelists.
Year to December 2016 switching figures: On 6 January 2017, Bilendi conducted an online survey among 2001 randomly selected British adults who are Maximiles UK panelists. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.
The Year to December 2015 switching survey was also an online survey conducted by Bilendi among 2001 randomly selected British adults who are Maximiles UK panelists, it was conducted on 5 January 2016.
On all Bilendi research, the margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.
GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
GoCompare does not sell its customers’ data.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).
For more information visit www.gocompare.com and www.gocomparegroup.com