37% of UK consumers eye motor insurance switch

A recent survey by Smart Money People reveals that 37% of UK consumers are considering switching their motor insurance provider in the next year. The primary motivator behind this trend, cited by 87% of respondents, is the desire to save money.

The Association of British Insurers (ABI) reports a 29% increase in the average premium paid for private comprehensive motor insurance in Q3 of 2023. This is compared to the same period in 2022, reaching a record high of £561. This surge in premiums has led to dissatisfaction among consumers. Customer satisfaction for car insurance has dropped by 20% year-on-year, according to Smart Money People’s data.

The study anticipates that motor insurance will experience the lowest growth among personal lines insurance products in the coming year.

The driving force behind switching providers remains money focused. 87% of potential switchers aim to secure a more affordable policy. Other reasons include adjusting coverage levels (8%), changes in personal circumstances (10%), and negative experiences with current providers (3%).

Smart Money People’s CEO, Jacqueline Dewey, suggests that insurers can navigate this competitive landscape by understanding consumer behaviors. She states; “With growth for motor insurance looking slower than other personal lines insurance markets, it’s more important than ever for insurers to keep their finger on the pulse.”

The study also underscores the importance of customer reviews in shaping the industry. As satisfaction scores dip in 2023, companies should pay attention to customer feedback to enhance services and maintain loyalty.

The car insurance landscape is undergoing significant changes driven by economic factors and consumer preferences. Insurers must adapt to these shifts by prioritising affordability, understanding consumer needs, and leveraging customer feedback to improve services in a competitive market.

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Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.