Recent statistics found that over half, 56% of drivers in the UK, have stayed with their current insurance company for the last 12 months.
However retention rates between different car insurance companies vary greatly with some insurers retaining 80% of their policyholders annually, while some barely manage to keep a third of their customers for a second year.
Good retention rates are key to profitability for car insurance companies as insurers who retain a large proportion of the policyholders don’t have to spend extra cash by investing in advertising to attract new customers.
The figures were collected via 5,000 interviews with car insurance policyholders in the UK.
While 56% of policyholders chose to stay with the same company they’ve been with for the last year, 44% chose to move, meaning £3.5 billion worth of insurance premiums were up for grabs.
One way which insurance companies are attempting to retain customers is by offering them deals on other types of cover alongside their car insurance policy such as home and travel insurance in order to boost retention rates and customer loyalty.
The best performing insurance companies in terms customer satisfaction over the last 12 months included RSA, followed by Liverpool Victoria, Sheila’s Wheels, Diamond and Swiftcover.