Half Motorists Pay Too Much For Car Insurance
More than 3.5 million Dutch people have currently insured their cars with the same company for more than five years. As a result, they pay unnecessarily much for their price differences with car policies. Since 2007, existing insurers have introduced cheaper (internet) labels. Partly because of this, the premium difference between car insurance policies has risen sharply. However, half of the motorists have not benefited from the price advantage. Together they can save 717 million euros on an annual basis. This is the conclusion of a study by the independent comparator Lemminkaken, conducted by Intomart GfK.
Total savings on car insurance
Expensive car insurers charge a policy with the same coverage on average three times as much as cheap companies. This price difference has become so huge because new labels have constantly reduced premiums in their competition for customers. Large companies felt this impulse much less. Many Dutch people remain loyal to their insurer for years.
“The figures from Intomart GfK also show this. More than 3.5 million motorists last changed their insurer more than five years ago. They can save an average of 200 euros each year. In total that amounts to an amount of 717 million euros, “said Erik Nazoric, director of Lemminkaken.
New labels from car insurers
With the new labels, the large traditional insurers offer price-conscious consumers the opportunity to switch to a cheaper alternative. Delta Lloyd, for example, introduced National Car Insurance, Alliance with Justsecure, Meachea with Weshared and ASR launched the ABC Budgio and Ritzo brands. Recent research into the relationship between the price and quality of motor insurance shows that cheap does not turn out to be expensive. “Newcomers must offer better conditions at a lower price. Otherwise, consumers will never switch, “explains Nazoric.
How long have you had your current car insurance?
Gender Education At the same insurer Male Female Low Medium High shorter than 1 year 10.7% 14.7% 9.7% 12.4% 14.6% 1 to 2 years 8.3% 12.6% 7.7% 8.1% 15.5% 2 to 3 years 9.1% 10.6% 9.5% 9.8% 10.1% 3 to 4 years 5.3% 5.9% 2.5% 5, 4% 7.5% 4 to 5 years 5.4% 7.2% 2.6% 8.1% 5.4% 5 to 10 years 17.0% 19.7% 15.4% 19.8% 17.6% longer than 10 years 44.2% 29.3% 52.5% 36.4% 29.4%
Lower educated people profitless
An interesting detail is that those with a low level of education stay with the same insurer for much longer than those with a higher level of education. Of the lower educated, 52.5 percent have had the same car insurance for more than 10 years compared to 29.4 percent of the higher educated.
Nazoric: “Higher educated people are more likely to look for a better offer themselves. The research also shows that they compare significantly more through insurance comparison sites. They then automatically end up with the inexpensive new labels. Relatively less educated people are more often insured through an intermediary and make less use of comparison sites. As a result, they have benefited less from the fall in prices in recent years. “