Insurance customers clock up more time on shopping around
More than half of customers say they are putting more effort into finding the best deal
Premium Credit’s Insurance Index shows 70% of adults use some form of credit to pay for one or more types of cover
More than half of insurance customers are putting more time into finding the most competitive deal as they try to keep costs down, new research from the UK’s leading premium finance company, Premium Credit, shows.
Its research shows 53% of insurance customers are putting more effort into finding the best quality cover and price with the cost-of-living crisis the main motivation. That is higher than the 43% of customers who said they were putting more time into shopping around when Premium Credit’s Insurance Index reported last year.
The increase in the numbers spending more time on shopping around is mainly due to the cost-of-living crisis. Around 71% who are spending more time on comparing prices and quality of cover say they are motivated by rising prices across the economy.
However more than a fifth (22%) say increased innovation in the insurance industry has made it worthwhile spending more time on shopping around and 18% say increased use of digital technology makes shopping around easier.
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 70% compared with 66% in March 2022 and 69% in October 2021.
A key reason for the rise in the use of credit to pay for insurance is the cost-of-living squeeze – around 44% who use credit said they borrowed more to ease financial pressures while 18% said they increased borrowing because credit had become cheaper.
Premium Credit is advising customers to always consider premium finance which, for a small charge, enables them to pay monthly for cover instead of in a lump sum. Spreading payments in such a way can help ease cash flow and make paying for vital insurance more convenient.
Owen Thomas, Chief Sales Officer at Premium Credit said: “The rising numbers of insurance customers spending more time on shopping around reflects the rise in prices across the economy in general.”
“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 cashflow.”
“It is a very cost-competitive means for consumers to buy insurance and better manage their finances through spreading payments. At a time when household finances are under pressure it can be a good alternative to other forms of credit.”
Authored by Premium Credit
About Premium Credit
We are the leading provider of premium finance in the UK and Ireland, and the only company endorsed by BIBA.
We are authorised and regulated by the Financial Conduct Authority, and work with over 3,000 producers of all sizes. We serve over 2.1 million customers, process 24 million direct debits and receive advances of £3.5 billion.
For over 30 years, we’ve led the market through thought leadership, innovation and technology and have helped our partners offer finance compliantly to their customers through face-to-face, telephony and online channels.
We continue to invest to ensure we provide a quality service and support that helps you grow your business and commission. From the delivery of a seamless customer journey, which includes real time decisioning for financing and 24/7 account servicing, to consultation that improves the offer of finance to customers, we are committed to growing the premium finance market.
Our Specialist Lending division also provides finance to pay other annual costs, such as professional fees, membership subscriptions, commercial service charges, golf clubs and school fees.