February 25, 2011

Monkeysupermarket were busy this week hammering yet another nail into the heavily-studded coffin of motor insurance profitability.

New ‘research’ commissioned by the aforementioned comparison site has revealed that one in five motor insurance buyers fails to shop around each time they reach their annual renewal.

“With car insurance renewals season in full swing,” said Harris Peterson, ‘car insurance expert’ at Moneysupermeerkat, “it’s important that drivers shop around to take advantage of the savings that can be made by switching. In just a small amount of time, motorists could save themselves £270 a year.” And thus, presumably, pay nothing at all within a few years from now. Or is that £270 between them?

“Motorists,” Peterson claims, “are wasting £1.7bn each year by renewing with their current insurers. Providers lure drivers in with a competitive deal or special discount in the first year,” he said, “which is not ordinarily available to existing policyholders. Rest assured, if you don’t shop around in the second year, certain insurers will not hesitate to increase your renewal price – hardly the thanks deserved for being a loyal customer.”

No indeed. Motorists need to rouse themselves from their hypnagogic apathy and be sure to shaft those fiendish profit-reaping insurers by deserting them before they have a chance to recoup loss-leading intro offers. It’s that or showering your insurers with excessive premium payouts in a wanton act of onanistic wastefulness.

One Insurance Times reader, Peter Phelps, was “intrigued” to read the words of Mr Peterson, labeling first-year swappers “rate tarts” and questioning how insurers are supposed to make any money with such faithless customers.

It surely cannot be long before the state is obliged to step in and set up some kind of not-for-profit national car insurance fund – leaving comparison sites with rather less to compare.

Either that or car insurers could consider some kind of cartel arrangement…


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