More Australians now shop around when their vehicle insurance policy is due for renewal, according to a Roy Morgan survey of 37,000 vehicle insurance customers.
The latest research shows that 16.3% of policy holders shopped around compared to only 12.2% four years ago, meaning less Australians are inclined to renew their policies automatically.
Despite more consumers shopping around, there has only been a minor increase over the last four years in changing companies, from 4.8% in 2008 to 5.6% in 2012.
The most frequently used channel to obtain Vehicle Insurance is still the telephone, accounting for 44.4%, but purchasing online has more than doubled in just three years (up from 6.6% in September 2009 to 13.7% in September 2012). This illustrates how the Internet is improving the ease with which consumers can shop around, research and interact with Insurance providers.
Norman Morris from Roy Morgan says: “With greater ease and accessibility of information available online, including policy documents and comparison tools, consumers are now much better placed to make informed decisions regarding their insurance options.
“Over the last couple of years the growth in low cost, online insurance providers such as Budget Direct, Youi, Coles, etc has changed the Vehicle Insurance landscape, with the market share of these low cost insurers as a group almost doubling in the last 2 years.
“In a market where more customers are shopping around and is increasingly price driven, understanding customer needs and satisfying them better than competitors is now more important than ever.”
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