2018 UK car insurance industry watch covers the most important news stories, trends, research, opinion and developments for 2018.
If you are actively searching for a new cheap UK car insurance quote in 2018, and looking to SAVE money on your next policy then click through to the HomeApproved home page and you will find the relevant get a quote buttons at the top of the page.
New Driver – New Car?!
OK, congratulations are in order – you have just passed your driving test! Throw those red ‘L’ plates in the bin and pin on the lovely new green ‘P’ plates.
However, before you rush out, experience the freedom of driving on your own and get behind the wheel there are some very important considerations to take on board.
Firstly you need to consider the potential benefits of furthering your driving skills and knowledge by enrolling on the Pass Plus scheme. Remember: In the first year of driving, one driver in five is involved in an accident.
Your next port of call should be to the website Think Road Safety. Here you’ll find news of the latest campaigns and road safety advice to keep everyone safer on the UK’s roads.
Last but not least you will need to know and understand the law and requirements for registering and taxing your vehicle and your legal obligations as a driver and/or keeper of a vehicle.
Shop Around for a Lower Motor Insurance Premium
Latest research claims that despite all the press and media coverage of the benefits of shopping around for a new motor quote on renewal – one in five drivers still only obtain one quote.
*This is despite the fact that of those motorists who have been with their current insurers for three years or more (34% of motorists), over a third of them (37%) claim that their premiums increased.
Although this is initially surprising, UK consumers have a well researched reluctance to change their personal finance and insurance providers. Ask yourself how many times you have changed your bank in the last 5-10 years and you can understand the type of mentally which prevails.
The research indicates that of those motorists who have been with the same insurer for three years or more, over a quarter of people surveyed said their premiums rose by up to 5%, 1.34 million by between 6% and 10% and over half a million said that their premiums had increased by more than 10%.
It is common knowledge that many motor insurers make the bulk of their profit from customers after the first year. Insurers are smart enough to know that once a customer is on board there is a good chance that they (policyholder) will not change insurer.
Motorists need to be made constantly aware that the UK car insurance market is fiercely competitive and that motorists hold the trump card when it comes to driving a low premium whilst maintaining cover levels.
Petrol Station Car Insurance
Would it be beyond the realms of marketing possibility or thinking for two big (motor insurance and petrol) companies to get together and offer motor insurance policies on the forecourt?
A captive market (we all have to fill up) of (99%) law abiding motorists could be offered a new policy/renewal offer or deal when filling up with, BP or Shell for example. Companies such as Direct Line, Aviva and even niche players such as Diamond and Adrian Flux could benefit from such a strategic alliance.
It could even be possible to launch a new loyalty card to tie in with the policies being offered on the forecourt?
UK Car Insurance Discrimination Probe
The City regulator is to investigate how car insurance policies are priced after finding “hidden” discrimination between customers. The Financial Conduct Authority (FCA) will study the scale of the issue, whom it affects, and possible solutions.
UK car insurance customers may pay different prices depending on how loyal they are, their age, and whether they are online. Marital status, home postcode and employment status may also have a hidden effect on price, the FCA said. Citizens Advice has already warned loyal customers are being “ripped off”.
Failing to shop around, or the inability to do so, costs people hundreds of pounds. This is known in the industry as “price walking” – where the cost of insurance is increased each year the customer sticks with the same provider, eventually making their policy much more expensive (and profitable for the insurer) than for a new customer.
The regulator has written to the chief executives of insurance firms to set out that it expects them to treat customers fairly. Andrew Bailey, chief executive of the FCA, said: “This market study will help us examine the outcomes from general insurance pricing practices and inform how, if necessary, we should intervene to improve the market.