According to Aviva’s Chief Executive, the personal insurance market has become ‘dysfunctional’
A new survey of motorists in the UK, which has been carried out by smartdriverclub.co.uk, has reinforced the Chief Executive of Aviva’s comments, in which he described the personal insurance market as becoming ‘dysfunctional’.
The UK based auto insurance agency questioned a group of drivers about the way in which they were managing their motoring costs.
Smartdriverclub found that 63% of those questioned said they were looking around for different car insurance quotes, which showed just how frustrated motorists in the UK are with insurance providers.
What the survey did show is that only 9% of drivers consider Usage Based Insurance cover (telematics) as an option, which means that many motorists in the UK are losing out on saving a few pounds by not taking out an insurance policy based on driver behaviour, rather settling for the more traditional personal insurance policy.
When the agency asked those taking part in the survey what they were doing about managing their motoring costs, 63% said they were shopping around for better insurance quotes, whilst 48% said they were trying to curb their fuel spending.
Smartdriverclub found that 44% were relying less on their car, with 25% putting the purchase of a new car on hold.
Of those questioned, 16% said they had even considered the move to a smaller car to try and save money but only 9% thought about the option to switch to usage based insurance.
As of 1 June 2017, the Insurance Premium Tax (IPT) rate will rise for the third time in two years to 12%, meaning higher priced insurance policies for motorists.
According to the CEO of smartdriverclub, Penny Searles, some of their customers have managed to save around 40% on their insurance by taking out a usage based insurance policy, which she believes is a much fairer way to calculate driver premiums.
“Insurers are now required to show last year’s premium on renewal quotes which will be spurring motorists to shop around for a better quote,” she added.
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