MOTORISTS ARE BECOMING MORE SATISFIED WITH INSURANCE PROVIDERS ACCORDING TO A NEW SURVEY BY AUTO TRADER
February 6th, 2008A new survey by Auto Trader, the UK’s no 1 motoring website and magazine, reveals that over 60% of motorists believe their insurance provider dealt with their most recent claim ‘very well’ and ‘quite well’.
Nearly 15% rated their insurance company ‘very good’, with nearly 30% rating them as ‘good’ and nearly 40% rating them as ‘satisfactory’.
However, there were still complaints from 20% of respondents, who rated their insurance provider as ‘poor’ or ‘very poor’. Out of the 46% who had made a claim on their insurance, over a quarter were unhappy. Comments regarding unsatisfactory claims included:
- taking too long to process (48% - an increase of 20%)
- insufficient claim amounts (20% - an increase of 10%)
- claim amounts not being paid at all (11% - an increase of 6%)
- invalid claims through small print clauses (5% - no change)
Currently, over a third of motorists believe that the majority of drivers are being forced to subsidise young drivers’ mistakes through the cost of insurance premiums, with 55% commenting that young people should also be prevented from being a named driver on their parents’ insurance.
The results, conducted amongst 4,500 motorists nationwide, shows that overall, motorists still have a very mixed opinion of insurance companies:
- 55% of respondents believe that insurance companies are more interested in making money than protecting customers
- 53% believe that insurance companies try to avoid paying claims as much as they can
- over 50% commented that insurance companies often under pay on replacement vehicles after a write-off
- however, nearly one third think their insurance provider is helpful and easy to deal with
The survey also shows that motorists are growing less and less loyal to their current insurance providers, with just 24% commenting that they will renew with their current insurer if the existing price is about the same. Nearly 30% commented that when it comes to renewing their insurance, they will go online and get quotes from insurers, with 37% using the Internet to get quotes from price comparison sites.
A total of 78% claim to have used a price comparison website in their search for insurance, with 30% commenting that quotes via a price comparison site were very accurate, with nearly 50% noting that prices differed slightly from the actual quote direct from the insurer.
Today, the majority of motorists shop around annually for their insurance (82%). The most important factors, according to UK motorists, for choosing an insurance provider are low-cost premiums (100%), extent of cover offered (48%), being a trusted, reputable brand (38%), no claims protection (26%) and low excess (22%).
Tom White, Head of Financial Services Development at Auto Trader, comments: “There is certainly room for improvement by the insurance providers. Insurance companies need to ensure their claims process is fast an efficient as our research shows that customer loyalty is dwindling, and therefore insurance providers need to ensure they are offering a good service to maintain customer retention levels.
“We have introduced our own insurance service which we hope addresses some of these issues and have also now launched a price comparison tool on AutoTrader.co.uk, searching up to 150 schemes from UK insurance providers.”
Auto Trader has launched its own on-line insurance product, partnered with Junction, part of the Budget Group Limited (BGL) Group, the leading personal lines intermediary.
Auto Trader Insurance is available for immediate cover and features a free 30 day warranty, flexible payment options, claims repairs guaranteed for 3 years, no application forms to fill in, automatic 60 days EU cover, as well as breakdown cover and legal expenses cover available.
Quotes from Auto Trader Insurance can be found in the sites’ own price comparison tool, which also searched over 150 schemes from UK insurance providers, offering a wide range of choice for motorists.
Auto Trader has positioned itself as the channel of choice for buying and selling a new and used vehicle, built on the combination of local targeting and comprehensive national coverage and can be accessed via its magazine, website and WAP components.
- Ends -
Notes to Editor:
• With 13 regional Auto Trader magazines across the UK and the Republic of Ireland, the brand is building a competitive position across all effective channels including print, the web and WAP.
• Auto Trader is owned by Trader Media Group, which also publishes market leading niche titles such as Top Marques, Bike Trader, Truck & Plant Trader, Ad Trader, Motorhome and Caravan Trader, Farmers Trader, Auto Freeway, TNT magazine – all with the largest reach in their sectors, through magazine readership and web visitors.
• Trader Media Group publishes over 70 titles every week with a combined circulation of 1.5 million and has leading websites for its top titles.
• Trader Media Group, a division of Guardian Media Group, employs over 3,900 people across 40 locations in the UK, Ireland, Holland, Italy and South Africa. The Group is looking to expand on its winning formula - developing a one-stop-shop for motorists; giving trade customers the opportunity to choose all effective channels to market; building the service and relationship with dealers and manufacturers; and strengthening its portfolio of automotive and specialist classified titles.
For further information, please contact:
Karen Hughes/Caroline Burnell
The Drum Consultancy
Tel: 020 7025 8044
Fax: 020 7025 8100
Email: karenh@drumbeat.co.uk
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