Customer loyalty is set for a nose dive next year when it comes to auto insurance, new research claims.
Just one in seven car insurance customers plan to renew their policy with an existing provider in 2017 – down from two in seven in 2015 – a report from Quickpages found.
This amounts to around 39 million customers planning to switch provider next year – meaning insurers are facing stiff competition.
Price is the key motivator for many of those looking to switch, with a whopping 78% declaring cost the most important factor when purchasing a car insurance policy.
The level of cover fell second to price in terms of the most important factors that policyholders take into consideration.
Six out of 10 customers will choose a policy from between three and four providers, the report found, while only 14% of customers plan to renew their current policy without looking at alternatives.
In light of the findings, Quickpages suggested that insurers focus on customer acquisition and make it as easy as possible for customers to contact them.
“As the media continues to report on hikes in insurance prices, more and more consumers are ditching loyalty in favour of looking for a better deal,” Sharon Mawson, commercial director of QuickPages, said.
“It is therefore crucial for insurance providers in 2017 to ensure that they make it as easy as possible for customers to buy from them both online and over the phone.”
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