UK Motor Insurance Consumer Research Report June 2019 - ResearchAndMarkets.com

DUBLIN--()--The "UK Motor Insurance Consumer Research Report June 2019" report has been added to ResearchAndMarkets.com's offering.

Around one-in-ten Drivers are not insured. Around 80% of consumers are Drivers, defined as individuals who either own a car or have use of a car owned by someone else. Only around nine-in-ten Drivers have motor insurance, with the 10% of uninsured Drivers representing those who are driving illegally without insurance, those whose cars have SORN status, children whose insurance may be fronted by their parents and don't consider themselves as owning insurance, and those who use company cars for personal purposes with the car insured by businesses.

A feature of car ownership and insurance cover is that both tend to rise strongly with age, social grade and income. The percentage of drivers who are insured also tends to rise with age and income, suggesting it is younger, less affluent consumers who are most likely to drive without insurance and benefit from fronting.

Key facts

  • 69% of consumers said they owned a car and 8% don't own a motor car but have the use of a car owned by someone else. As a result, 76% of consumers are Drivers
  • Only 89% of Drivers said they had motor insurance 74% of Drivers aged 18-24 say they are covered by insurance, compared with 93% of adults aged 55+
  • 80% of drivers with a net monthly income of less than 1,000 say they are covered by insurance, compared with 86%-91% of those with net income of 1,000 and more each month.

Key Topics Covered:

1. EXECUTIVE SUMMARY

2. INTRODUCTION

3. PROFILE OF THE INSURED DRIVER

  • Key findings
  • Almost seven-in-ten adults own a car
  • And almost one-in-ten have use of a car they do not own
  • Meaning over three-quarter of adults are Drivers
  • Just over seven-in-ten adults own motor insurance
  • Car ownership and insurance cover strongly related to age, social grade, and income
  • Evidence for fronting
  • Drivers in Inner London and Northern Ireland the least likely to be insured
  • Almost six-in-ten insurance policies cover small or medium sized cars

4. HOW DRIVERS APPROACH INSURANCE

  • Key findings
  • Risk aversion and value perceptions
  • Young, working-class men, the least likely to value motor insurance
  • Confidence and self-reliance
  • One-third of motor insurance holders need assistance
  • Predisposition toward an online customer journey
  • The Circle of Motor Insurance Life

5. THE TYPES OF INSURANCE OWNED

  • Key findings
  • Standalone or packaged?
  • Older adults tend not to bundle, but affluent ones may
  • Self-Reliant consumers who buy online opt for standalone policies
  • Very few policyholders opt for multi-car cover
  • Less than one-in-ten have telematics insurance but there is growth potential
  • Young, affluent males the most likely to have a telematics policy
  • Most policyholders have motor breakdown cover
  • One-in-five policyholders have a dash cam

6. THE CUSTOMER JOURNEY BEGINS

  • Key findings
  • Around nine-in-ten policyholders are repeat purchasers
  • With over one-third switching provider
  • Discontented Confident consumers who like to shop online are the most likely to switch
  • The importance of the renewal prompt
  • Renewing does not mean being passive

7. BUYING A POLICY: FINDING THE RIGHT DEAL

  • Key findings
  • Price comparison websites dominate the research space
  • Online attitudes drive online self-discovery
  • As do perceptions of trust
  • Ease of use and information the key positives of PCWs
  • The PCW dominance is here to stay
  • Policies are purchased either directly or via PCWs
  • The method of policy acquisition drives the acquisition channel
  • The information source drives the acquisition channel

8. PRICE, COVER OR BRAND?

  • Key findings
  • Five purchasing strategies
  • Comfort Seekers like the warmth of a familiar brand
  • Shopping online is not all about price
  • As policyholders age, so the focus shifts towards cover and away from price
  • Whereas brand focus is more to do with income and social grade
  • Buying insurance comes down to negotiation
  • But do consumers have the armour to negotiate adequately?
  • It's the volume of paperwork that limits knowledge

9. BEING A POLICYHOLDER

  • Key findings
  • A generally pain-free experience
  • Online policy management now becoming the norm
  • 21% of policyholders have claimed within the past five years
  • Claims are concentrated at the top end of the market
  • The claims process goes smoothly for most claimants, resulting in high levels of satisfaction.

10. ENDING THE JOURNEY: CUSTOMER LOYALTY AND SWITCHING

  • Key findings
  • Loyalty is in short supply
  • And there is no sign it is going to improve in the future
  • Switching is strongly price led
  • Which brings into focus the issue of price walking

11. CROSS SELLING OPPORTUNITIES

Companies Mentioned

  • Financial Conduct Authority (FCA)
  • Go Compare
  • IRN Research (Consultants)
  • MIS Group UK
  • Motor Insurance Bureau (MIB)
  • The AA

For more information about this report visit https://www.researchandmarkets.com/r/5bgdaj

Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
Related Topics: Automotive Insurance

Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
Related Topics: Automotive Insurance