50 per cent increase in drivers regularly switching insurer
New research from Gocompare.com has found that in the last two years there has been a substantial increase in the number of consumers who now are regularly switching their car insurer. In December 2009, Gocompare found that 22 per cent of Brits had switched their car insurer, but research carried out in October this year shows that the figure has jumped to 34 per cent. That's a 50 per cent increase in the number of drivers who have ditched their car insurer in favour of a better deal elsewhere.
However, despite the increase in consumers shopping around for car insurance, nearly a third of Brits haven't switched providers for ANY of the 20 most common financial products in the last year including car insurance, home insurance, energy provider, savings bank or phone and broadband services.
And although less than a quarter (23%) of consumers feel that financial and energy companies reward loyal customers by giving them the best deals, there are still millions of consumers who have NEVER switched providers for some key financial products.
28 per cent have never switched bank accounts
18 per cent have never switched mobile phone provider
16 per cent have never switched mortgage lender
16 per cent have never switched their home insurer
13 per cent have never switched their car insurer
12 per cent have never switched savings accounts
9.5 per cent have never switched energy provider
77 per cent of consumers have used a comparison site in the last 12 months with car insurance being the product most compared. 34 per cent of drivers have switched their car insurer in the last 12 months and 22 per cent of consumers have switched their home insurer.
Although nearly a quarter (24.6%) of Brits say that they now regularly check all of their financial products to ensure they are getting the best deals, consumers clearly need a bit more encouragement when it comes to ditching and switching some financial products and services.
Just 1% have switched their life insurance in the last 12 months
Just 3% have switched their mortgage provider
Just 3% have switched their landline provider
Just 4% have switched their bank account
Just 6% have switched their ISA or savings account provider
Just 9% have switched energy provider
John Miles, Gocompare.com's business development director commented, "Our research shows a significant change in consumer behaviour towards their car insurer. More drivers than ever are realising that the best way to save money on their car insurance is to compare their premium at every renewal. However, millions of consumers are still staying with the same insurers, energy companies and banks for years, often in the mistaken belief that their loyalty will be rewarded. The message appears to be getting through on car insurance but there are still plenty of products where consumers are far more likely to stick with the same provider for years than switch to get a better deal.
"One of the easiest ways to save money on your household bills is to find the best deals for your financial, phone, broadband and energy services. There's no point paying more than you have to with one provider when another will give you the same service for less. In addition, if your savings are earning a paltry rate of interest you can move them to an account which pays you more. But if you want to make sure you're not throwing your money away it's up to you to go compare it for yourself.
"Fortunately that's where comparison sites can really help out. People using Gocompare.com save on average £393.67 on their car insurance, £125.33 on their home insurance and £557.33 on their energy tariff when they compare their existing deal against the competition, and that's just three financial products or services out of the many most consumers now have.
"These days few people can afford to be nonchalant about their household bills, so a few minutes spent sorting out your finances could save you hours worrying about them."