Do you shop around for car insurance?
Over 75% of us don’t even look at other insurers when it comes to renewal time.
When your car insurance is due for renewal, do you just automatically go with your current provider? Many of us do it seems, but you could be missing out on substantial savings by switching car insurers!
Staying loyal to your car insurer
A report published by research company Roy Morgan details how 77.5% of the insurance-buying public gladly stick with their chosen brand. 14.8% of customers do shop around, but don’t end up switching.
According to Roy Morgan, of the major car and home insurers, CGU has the most loyal customers, with a huge 85% sticking by them each year.
While another study showed the Royal Automobile Club of Tasmania (RACT) could boast the most satisfied customers, and the Royal Automobile Club of Victoria (RACV) has the second most loyal customers, with 82.8% not even looking at other car insurance providers. Insurance from the Commonwealth Bank narrowly finished behind RACV, with 82.6% renewal rates.
Dramatic changes in customer loyalty
This is the first time that CGU has claimed the most loyal customers. RACV held onto second place, but 1.3% of its customer-base moved away when compared with 2017. The Royal Automobile Club of Queensland slipped from first to fourth place, losing 2.9% of its loyal patrons over July 2017.
Buying insurance based on more than cost alone
Director of industry communications for Roy Morgan Norman Morris said this is good news for insurance brands.
“Roy Morgan data shows that general insurance policyholders primarily say that they change companies or at least shop around due to issues relating to better premiums. Although 14.8% of Australians with general insurance have shopped around, it is a positive outcome for brands that this hasn’t led to customers switching to a competitive brand,” Morris said in a statement.
Morris also stated that the high levels of customer loyalty reflect satisfaction with their chosen brand and not just low renewal premiums.
“It is worth noting that satisfaction with general insurance is associated with higher levels of loyalty. Retaining customers is therefore likely to be impacted by more than price but also by the many other factors that drive improvements in satisfaction,” Morris said.