More Aussies shop around for car insurance, research shows

Mozo

Thursday 08 November 2012

More and more Aussies are shopping around for the best car insurance quotes once their existing policy is due to expire.

Roy Morgan Research surveyed 37,000 vehicle owners to find out how they set about purchasing insurance each year.

The poll suggested that 16.3 per cent of motorists now compare different deals before making a commitment.

This is encouraging, as the figure only stood at 12.2 per cent four years ago, which implies that a greater number of Aussies know they can get a cheaper quote if they scour the market.

However, a lot of people still remain loyal to their current provider, as a mere 5.6 per cent end up switching to a different company once they have weighed up their options. This is up from 4.8 per cent in 2008 – a modest rise.

The research also showed 44.4 per cent of car owners prefer to use the telephone to purchase their insurance, but there are clear signs that more people are starting to pay for their cover online.

Indeed, the number of customers using the internet to buy their next 12 months' worth of insurance has more than doubled in the last three years – rising from just 6.6 per cent in September 2009 to 13.7 per cent in the same month in 2012.

Industry communications director at Roy Morgan Norman Morris said there is now far greater competition in the cheap car insurance market.

"With greater ease and accessibility of information available online, including policy documents and comparison tools, consumers are now much better placed to make informed decisions regarding their insurance options," he remarked.

"In a market where more customers are shopping around and is increasingly price driven, understanding customer needs and satisfying them better than competitors is now more important than ever."

Obviously, Aussies who drive a vehicle with a smaller, less powerful engine will find it easier to secure a cheap quote.

People who have a clean licence also stand a better chance of finding a much more affordable policy than somebody who has amassed a number of motoring offences.

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More Aussies shop around for car insurance, research shows
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