Insurance customers are working harder on shopping around

The numbers of insurance customers putting more effort into shopping around for the best cover has increased sharply as people look for the best deal available, new research from UK premium finance company Premium Credit has shown.

Its research reveals that 62% of customers say they are now working harder to find the best price and quality of cover compared with 53% in last year’s Premium Credit Insurance Index and 43% when the index reported in 2022.

According to Premium Credit, the rapid rise in the number of people spending more time shopping around is mainly driven by the ongoing cost of living crisis. Around 66% who are spending more time comparing prices and quality of cover say they are motivated by rising prices across the economy.

However, nearly a quarter (24%) say increased innovation in the insurance industry has made it worthwhile spending more time shopping around, and 20% say they have become more confident using digital technology so find it easier to compare deals.

Further to this, Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found that the numbers of people using some form of credit to pay for one or more insurance policy has increased to 71% from 70% in March 2023.

The research shows that one in seven (14%) of adults have found it more difficult to secure credit such as mortgages, credit cards or loans since the cost of living crisis started. Around one in five (20%) say they have been turned down for forms of credit during that period with 12% saying a credit card application has been rejected.

Owen Thomas, Chief Sales Officer at Premium Credit, said that 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. Premium finance is specifically designed for insurance buyers to help make important insurance policies affordable and improve cash flow while also being more convenient.

“It is a very cost-competitive means for consumers to buy insurance and better manage their finances through spreading payments. It is firmly established as a good alternative to other forms of credit.”

US travel insurance comparison site Yonder Travel Insurance recently analysed customer data to uncover travel trends for summer 2024.