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

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DUBLIN--(BUSINESS WIRE)-- 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20190715005431/en/

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Related Topics: Automotive Insurance