Lazy is perhaps too strong a word to describe some consumers – perhaps apathy would be a better description. Apathy can be described as a sense of indifference, a lack of interest displayed and often such a person might exhibit sluggishness. We would like to argue that many vehicle owners display apathy with regards to their car insurance cover.
Consumers are not afraid to complain about escalating costs and bad service. They are far less likely to share compliments and tell one another of their good experiences with service providers such as insurance companies, cellular phone providers and rental agencies.
We tend to console our friends who have experienced treatment that is not fair. We also share our advice and personal expertise in these matters. In many of these cases there is little that we can do i.e. when we are caught at the mercy of a specific body corporate or local municipality. There is however also opportunities where a bit of extra homework and effort could lead us to a better or more affordable provider of services to meet our needs.
Criticism of increased car insurance premiums
If you are one of those consumers/ vehicle owners who are criticising the car insurance companies for increases in your car insurance premiums – we would like to consider your scenario and reflect on possible solutions.
We could perhaps start by asking 3 simple questions:
• Do you know the exact amount of your car insurance premium?
• When last have you checked your short term insurance statement and the specific amount payable for your car insurance premium?
• What would you have paid for your car insurance premium with 2 other insurance companies?
Even though many consumers are complaining about expensive premiums – it appear that few are doing something about it! They simply continue with the status quo and seldom put in the effort to look for alternatives.
Research undertaken by price comparison site in the UK – oneysupermarket.com, discovered that a quarter of drivers didn’t bother seeking out cheaper car coverage, even though they could save more than £230 a year on average by doing so.
UK Research on comparison and automatic renewal of car insurance
• 10% of motorists said they simply couldn’t be bothered shopping around for a better price
• 15% were under the misguided impression that they wouldn’t be able to find a cheaper provider.
• Across the UK, 36 per cent of motorists were willing to hunt out a less expensive policy, with the savviest savers based in Yorkshire and the Humber (46 per cent), Wales (44 per cent) and the West Midlands (41 per cent).
• Younger motorists – aged 18-34 – were more willing to change car insurance providers, switching suppliers on average every 1.8 years.
• Drivers over 55 were more likely to stick with their current provider, staying loyal to them for an average of 3.5 years, although this loyalty doesn’t seem to translate to cheaper prices.
Steve Sweeney, head of car insurance at moneysupermarket.com, said:
“Our research shows people can save £233 on average a year by scouring the market – that’s nearly £100 more compared with last year. Providers count on apathy to reap the profits and do not reward loyalty with a cheaper premium. In this current climate, it is shocking to see the sheer scale of drivers who won’t spend a few minutes to see if they can save money when renewing their car insurance.”
Conclusion and advice
It is not only the consumers in the UK who fail to regularly monitor their car insurance premiums and compare their premiums with other policies on the market. South Africans also are often blindly loyal and oblivious to huge savings available.
On the Car Insurance Blog we advise vehicle owners on finding the correct car insurance. This is however not to mean that the insurance product that you have found 5 years ago- and which was perfect for your needs at the time – is still the correct and most affordable premium at this time!!
There are many reasons – including life changes – why it might be important for you to review your car insurance cover. We would like to advise that you either do comparisons yourself by going direct – or, if you still work through an insurance broker – that you ask him to provide you with at least 2 car insurance quotes from competitors in the market!!