The holiday gift voucher provider Love2shop has highlighted the growing distain that many motorists have towards vehicle insurance providers.
According to a recent study of 2,000 motorists, only three in 10 stated that they trusted their car insurer to give them the best possible price and service.
Frank Creighton, Director of Business Development at Love2shop, highlighted the importance of offering bonuses to build trust with drivers at a time when car insurance prices are rising.
He explained: “Our research should serve as a stark warning to insurance providers that more needs to be done to earn the trust of customers.
“The study underscores the importance of instant rewards, not only in attracting new customers but also in retaining different ones. Over half of the survey respondents acknowledge that the immediate availability of insurance incentives influences their choice of provider.”
In particular, Love2shop noted that many motorists are confused by the meaning of some aspects of car insurance, with 35 percent of young adults admitting to not understanding how insurance works.
Whilst those taking part in the survey noted that car insurance is easier to understand than other forms of cover, including life and travel insurance, 47 percent highlighted their suspicion of hidden clauses.
45 percent of drivers also stated that not understanding how car insurance works has led to them putting off renewing their insurance, often causing prices to rise as the expiry date draws closer.
Frank called for more insurance companies to offer incentives, stating that companies that do have a more positive reputation with motorists.
He continued: “Going forward, it’s important for insurers to explore different ways to incentivise customers, with our data showing rewards, especially ones that can be granted instantly, are a key driver for customers when it comes to choosing a provider.
“At Love2shop, we already work with insurance providers, across a variety of specialist areas, to incentivise customers with gift cards. The results are overwhelmingly positive, with gift card rewards helpeing deliver improved customer loyalty, boosted customer satisfaction and increased retention rates.”
Car insurance is one of the most expensive recurring costs involved in running a car, with the average price of a year’s cover averaging at almost £1,000.
However, there are a number of ways in which drivers can lower the cost of their next premium, with one of the most successful being renewing or buying a new insurance policy three to four weeks before the current cover expires.
In addition, drivers should consider how their job title affects the quoted price, with small tweaks helping to lower the cost whilst still accurately reflecting what the motorist does for a living.
