Anyone looking to compare savings on the best car insurance deals available in the UK following the recession must be wary of simply choosing the cheapest package they can find, an expert has warned.
According to Graeme Trudgill, head of corporate affairs at the British Insurance Brokers’ Association (Biba), there is a danger that people could be tempted into signing up for the breakdown car cover product that costs the least money due to the financial constraints imposed on many consumers in the aftermath of the global economic downturn.
However, Mr Trudgill stated this is not a sensible tactic, as drivers should instead seek out the package that is best suited to their individual requirements as opposed to the one which will cost the lowest amount of money immediately.
The specialist commented there is a trend in Britain whereby the internet has caused more and more consumers to choose cheapness over quality when it comes to car insurance products.
He added that people are “choosing the cheapest possible thing that they can, forgetting that the key areas of cover may not be available under the new contract”.
Mr Trudgill was speaking following the publication of data from JD Power and Associates last week (November 17th 2010), which found that almost half of all such customers – 44 per cent – across the country have switched providers over the last year, with certain companies enjoying a customer retention rate of around 35 per cent.
And this is an indication that firms should begin to “look after their customers in the long term “, instead of just seeking to draw them in with overly-attractive headline rates initially, the Biba official went on to say. He concluded that the answer for individuals “is to go to your insurance broker”, as they will “search around the market every year and look for the best deal”.