Insurance customers spending more time shopping around

According to new research from UK premium finance company Premium Credit, more than half of insurance customers are putting more time into finding the most competitive deal as they try to keep costs down.

Its research shows 53 per cent of insurance customers are putting more effort into finding the best quality cover and price with the cost of living crisis the main motivation. When Premium Credit’s Insurance Index was reported last year, this level was at 43 per cent.

The increase in the numbers spending more time on shopping around is mainly due to the cost of living crisis. Around 71 per cent who are spending more time on comparing prices and quality of cover said they are motivated by rising prices across the economy.

However, 22 per cent said increased innovation in the insurance industry has made it worthwhile spending more time on shopping around and 18 per cent said increased use of digital technology makes shopping around easier.

In terms of how customers are paying for their insurance, Premium Credit has revealed that the numbers of people using some form of credit to pay for one or more insurance policy has increased to 70 per cent compared with 66 per cent in March 2022 and 69 per cent in October 2021. Around 44 per cent of those who use credit said they borrowed more to ease financial pressures, while 18 per cent said they increased borrowing because credit had become cheaper.

Owen Thomas, Chief Sales Officer at Premium Credit said: “The rising numbers of insurance customers spending more time on shopping around reflects the rise in prices across the economy in general.

“The insurance industry has made it easier for people to shop around and innovation across the sector makes comparing prices and levels of cover worthwhile.”