1 in 4 motorists switch car insurer after a claim

Frustrations during the claims process sends policy holders fleeing

1 in 3 motorists switches car insurer after making a claimYou only realise how much you need car insurance when it comes to making a claim. But for more than a quarter of drivers, a below-par claims process shows that they don’t need their current insurer: 29 percent of those who’ve made a claim admit switching insurer when their policy comes up for renewal.

Surely car insurers should come into their own when their services are actually required? Use it as an opportunity to build customer loyalty?

Not so, according to a survey by comparethemarket, which found that 3 in 4 motorists find the claims process “frustrating and slow”.

Other complaints include “rude and abrupt claims handlers”, generally poor customer service and final pay-outs that didn’t fully measure up to overall costs.

Just 1 in 10 policyholders received a pay-out of more than £5,000.

And just to add salt to the wound, 44 percent of motorists said they noticed a “significant increase” to their renewal premium following the claim. That’s why 64 percent of people who did switch said the main reason was finding better value elsewhere.

“It is disappointing to see that so many drivers who made a claim, but weren’t at fault, are seeing their premiums rise at renewal”, said comparethemarket’s director of insurance Simon McCulloch.

“Most claimants do not feel properly trusted or supported by their insurer when making a claim. For drivers, making a claim is the ‘moment of truth’, and the potentially traumatic circumstances can make the claims process all the more difficult and stressful.”

The best antidote to this? Do as so many already are doing, and “vote with your feet”. Arguably, the boss of comparethemarket would say this.

But the fact nearly 30 percent of people do actually switch insurer following a claim still suggests too many people are experiencing poor car insurance service when they need it most.   

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Richard Aucockhttps://www.motoringresearch.com/
Richard is director at Motoring Research. He has been with us since 2001, and has been a motoring journalist even longer. He won the IMCO Motoring Writer of the Future Award in 1996 and the acclaimed Sir William Lyons Award in 1998. Both awards are run by the Guild of Motoring Writers and Richard is currently chairman of the world's largest organisation for automotive media professionals. Richard is also a juror for World Car Awards and the UK juror for the AUTOBEST awards.

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