Car Insurance Companies Put Retention First

For car insurance companies across the UK, the buzz word is ‘retention’. Though around 75 per cent of us stick with our provider year in and year out, the insurers are battling to hang on to the increasing number of people who choose to shop around for cheap car insurance.

One tactic is to introduce no-claims protection. Direct Line for example has recently joined a handful of insurance companies willing to allow users to make small claims without losing their no-claims discount. In fact any vandalism claim made with Direct Line will see your no-claims bonus retained.

Insurers are also using direct-debit roll-ons to retain custom. Paying by direct debit often proves financially beneficial but it increases the likelihood of your car insurance policy running on year after year as you don’t need to do anything to update your contract.

Some car insurance companies also offer discounts for you to stick by them. More Than for example will offer two months’ free cover to any policyholders who have not made a claim in the previous 12 months.

Despite these seemingly attractive deals, consumers are being warned that they should still shop around.

In the majority of cases, the savings that can be made by shopping around far outweigh the special offers for sticking with your insurer. For example you could secure a cashback deal through Post Office car insurance, or pick up discounts as high as 35 per cent for taking your business to another company.

Consumers can find better value by taking advantage of introductory car insurance offers. So shop around for cheap car insurance using a price comparison tool to discover the cheapest available deal – even if you are happy with your existing insurer you can still take this quote to them and ask them to match it.

LuckySeven is an author specialising in car insurance. Always compare quotes if you want to find cheap car insurance.