DUBLIN–(BUSINESS WIRE)–The “UK Motor Breakdown Insurance Consumer Research Report 2019” report has been added to ResearchAndMarkets.com’s offering.
Almost half of consumers have breakdown cover.
Ownership of breakdown cover tends to rise with age, income and social grade.
Consumers with breakdown cover show a preference for buying standalone policies, rather than buying cover bundled with other products (e.g. with packaged bank accounts or motor insurance) and they also prefer to pay for their cover annually rather than on a monthly basis.
Motor breakdown cover holders can offer some cross-selling opportunities, outside of the obvious one of cross-selling motor insurance. They have high levels of ownership of home insurance for example. There are also opportunities to sell insurances like mobile phone and gadget insurance without having to win business from incumbent providers.
Key facts
- 46% of consumers or 58% of Drivers have motor breakdown cover.
- 48% of consumers with motor breakdown cover are aged 45+ and 62% are from the ABC1 social grades.
- 64% of cover holders have a standalone policy.
- 60% of adults with breakdown cover pay for it on an annual basis.
Key Topics Covered:
1. EXECUTIVE SUMMARY
- Almost half of consumers have breakdown cover
- Resulting in a large but slow growing market
- Most cover holders are risk-averse and self-reliant insurance buyers
- Just over half show an online preference
- The start of the customer journey is normally a Deja vu experience
- It’s wrong to think switching is pro-active and renewing is passive
- It’s an online world in terms of finding breakdown deals
- Cover is marginally more important than price
- Owning breakdown cover is a good experience
- If the price is not right, the customer relationship ends
2. INTRODUCTION
3. PROFILE OF THE COVER HOLDER
- Key findings
- Almost seven-in-ten adults own a car
- And almost one-in-ten have use of a car they do not own
- Meaning over three-quarters of adults are Drivers
- 46% of adults have motor breakdown cover
- Breakdown cover ownership strongly related to age, social grade, and income
- Motor breakdown owners are often mature and relatively affluent
- Motor breakdown policies primarily cover smaller cars
- Six-in-ten cover holders buy standalone policies
- And six-in-ten pay for their cover annually
- Cross selling Opportunities
4. HOW COVERED CONSUMERS APPROACH INSURANCE
- Key findings
- Risk aversion and value perceptions
- Confidence and self-reliance
- Predisposition toward an online customer journey
5. THE CUSTOMER JOURNEY BEGINS
- Key findings
- Around eight-in-ten policyholders are repeat purchasers
- Switching motor insurance often results in a switch of breakdown cover
- And renewing a motor insurance policy tends to result in a breakdown cover renewal
- Almost six-in-ten First-Time Buyers already own motor insurance
- Almost seven-in-ten breakdown cover holders co-ordinate their acquisition actions
- The importance of the renewal prompt
- Renewing does not mean being passive
- The actions taken when renewing motor insurance drives renewal actions for a breakdown
- And renewing also means haggling for a better deal
6. BUYING A POLICY: FINDING THE RIGHT DEAL
- Key findings
- Price comparison websites: the prime research resource
- PCWs are favoured because they are easy to use and give the info required
- Motor Breakdown Insurance
- Brokers need to improve consumer perceptions of trust
- The PCW dominance is here to stay
7. PRICE, COVER OR BRAND
- Key findings
- Five buying strategies
- Older adults have a cover bias
- You can focus on cover or brands and still drive a hard bargain
- But are cover holders in a position to negotiate?
- It’s the volume of paperwork that limits knowledge
8. BEING A POLICYHOLDER
- Key findings
- Cover holders are a happy bunch
- Because few have encountered any problems
- Many cover holders now manage their cover online
- 12% of cover holders have claimed within the last year
- Claiming is a satisfying and smooth process
9. ENDING THE JOURNEY: CUSTOMER LOYALTY AND SWITCHING
- Key findings
- Loyalty to the breakdown provider is stronger than it is to the motor insurance provider
- One-quarter of cover holders are thinking of switching
- Switching is strongly price led
10. MARKET SIZE AND TRENDS
- Key findings
- Market Drivers
- Three big players dominate the market
Companies Mentioned
- AXA
- Allianz
- Call Assist
- Green Flag
- LV
- MIS Group UK
- RAC Ltd.
- The AA
For more information about this report visit https://www.researchandmarkets.com/r/xfgw3k
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Related Topics: Automotive Insurance
