Home Business NewsBusinessAutomotive News Car insurance auto renewals plummets from 41% to only 16% due to increased costs of living crisis

Car insurance auto renewals plummets from 41% to only 16% due to increased costs of living crisis

by LLB Finance Reporter
30th May 22 12:37 pm

Trakm8, the recognised leader in technology solutions for insurance telematics, connected car data and fleet management, has commissioned a new national driver survey to gain insights into how drivers purchase insurance and what they expect from future policies.

The survey highlighted how the landscape has changed when choosing a car insurance provider with less than 1 in 5 (16%) drivers in the UK now auto-renewing with their current insurer compared to 41% last year. More than half (52%) of drivers are using comparison sites to find the most competitive price.

The survey went on to show that 1 in 10 rely on recommendations from friends and family and 7% are using review sites to help with the decision. Advertising seems to have little impact on decisions when renewing insurance with only 4% being influenced by a TV advert and even less by social (2%) or outdoor advertising (2%) showing how hard it is to persuade new customers to switch through marketing efforts alone.

These results really highlight how important it is for insurers to focus on retaining current customers. Trakm8 recently launched a portfolio of enhanced ‘connectedcare’ solutions that work alongside their driver data analytics to give insurers detailed insights into the health of their customer’s vehicles. These solutions enable insurers to truly understand their customers and their vehicles helping them increase customer retention by offering tailored policies based on their specific requirements.

Adam Gooch, Managing Director for Insurance at Trakm8, added, “At Trakm8 we are making connected car data services part of insurance solutions and this national driver survey gives us real insights into how policyholders in the UK are purchasing and renewing insurance policies.

Our enhanced driver and vehicle insights are part of our comprehensive end-to-end insurance telematics solutions that are designed to give insurers a unique opportunity to help personalise policies based on a customer’s habits and requirements.”

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