Insurance shoppers can’t be bothered to compare

The latest flood of insurance ‘surveys’ aimed at pinching business from rival insurers is all about shopping around before renewing a policy to save money.

Apparently, one in four home insurance policies are just renewed without question because too many householders find them confusing – or as the Insurance Blogger prefers, boring.

Boring or not, the difference between checking out comparison prices can add up to saving significant amounts, stress insurers.

Derisory savings

Insurance customers who did not shop around were asked why – and here are the results:

  • 38% are happy with their current provider
  • 24% were too busy
  • 21% don’t believe they could get better cover
  • 20% were too lazy
  • 16% don’t believe they can get cheaper cover

If the Insurance Blogger was a broker or a comparison site with a genuine care for my customers and their insurance karma, I suspect I would send out a renewal notice that stipulated the costs of any current cover – and the next best three quotes for the same or similar cover.

The reason customer don’t care is because they hate wasting their time phoning insurers and checking out online sites because despite efforts to pull money in to one supermarket, some brands are steadfastly stubborn and refuse to join the rest.

Then, after investing time and effort in sourcing new cover, the total saving is a derisory tenner.

Customer coup

That automatically strikes out all the objections above – those that are happy have checked out their options, those that are too busy or too lazy have the job done for them and those looking for better or cheaper cover are satisfied as well.

For the broker, it’s a customer service coup because the customer is going to renew through them.

Implementing the system is a cinch for most brokers, as it’s just a matter of running a query from information already on their customer database.

Online comparison sites already do this when customers input their details, so the technology leap is really a tiny step.

For home insurance from a broker you can trust, and a guaranteed minimum savign of at leat 10%, visit Quoteline Direct

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One Response to Insurance shoppers can’t be bothered to compare

  1. It all depends on how important money is to the individual. Renewal quotes are not always the most competitive – year 2 is the time a broker can make money on the policy and they will try their best. Comparing prices is still the best way to save money and the myth that it takes ages does not ring true. On Home Insurance for my own property it took 8m30secs on Money Supermarket, 8m43secs on Confused and 5m50secs on The Property Insurer. Even if you save just £10 that’s between £1-£2 per minute, that’s worth a bit of effort surely…or it’s down to how important money is to you. I’d compare, that’s for sure.

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