A car insurance comparison site for the loyal customer

Research published by TescoCompare.com, provides an insight into the 7.8 million loyal car insurance customers who haven’t switched insurers in the last five years. The primary motivation for these consumers to remain loyal, is the level of cover their policy provides, not the ‘no claims bonus’ or the price of the policy. In fact, the price they pay for their car insurance becomes increasingly less important the more loyal the customer is.

Only 45% of those who have been with their current car insurer for between 5 and 10 years cite price as the most important factor in choosing car insurance, compared to 71% who switched in the last year. And, price is only the most important factor for 24% of those who have been loyal for 10 years or more.

Of these most loyal types – who have been with their current car insurer for more than 10 years – 44% say the level of cover is the most important factor in choosing car insurance, with an additional 25% pointing to a particular policy feature (for example the amount of excess, provision of a courtesy car, or cover on other vehicles) as the critical factor.

And for those who haven’t switched in between 5 and 10 years – 35% say the level of cover is most important – with an additional 19% pointing to a policy feature as the critical factor.

The research findings also show that the 35% of car insurance customers with more than 10 years no claims discount are just as likely to have switched car insurers in the last year as those with lower amounts of no claims discounts.

Commenting on the research, Paul Baxter, Director of Commercial and Partnerships at Tesco Compare.com said: “This research suggests that if a car insurer wants the loyal customer that doesn’t switch they need to concentrate on the cover their policy provides and how they communicate it to the policyholder. Initiatives such as money back schemes and ‘free months’ won’t be as effective in keeping customers happy as good levels of the right cover that is understood by the customer.”

TescoCompare.com allows consumers to compare 25 different policy features – as well as the premium quoted –to help consumers chose not just the cheapest policy, but also the one which is right for them.

Paul Baxter continues: “The 7.8 million customers who have been loyal for 5 years or more now have, with the launch of TescoCompare.com, a car insurance comparison site ideally suited for them. And with some insurance companies charging loyal customers a premium, the next time people get a renewal letter they should spend a few minutes on TescoCompare.com to see if they can get the level of cover and policy features they enjoy from their current car insurance provider cheaper elsewhere.”

TescoCompare.com differentiates itself from other car insurance comparison sites by guaranteeing that the price quoted on the site doesn’t change when the customers clicks through to buy. Also, the price quoted on TescoCompare.com will be the same as or cheaper than if the customer went direct.

Visit Tesco Compare at tescocompare.com.