Free excess insurance is a potential winner in the giveaways battle among price comparison websites but delivering the best price and cover is still vital, new research from insurance data analytics expert Consumer Intelligence shows. It’s something that jewellery insurance specialist TH March have been doing for some years, but now comparison websites are offering the same `no excess’ teaser to win business.
Its research among drivers shows nearly one in three (31%) are more likely to buy insurance from a price comparison website (PCW) offering free excess insurance with around 60% rating the deal as a money saver offering genuine value.
GoCompare’s innovative offer of free excess insurance worth up to £250 is a change in the market and Consumer Intelligence’s data shows it will potentially entice customers.
Free excess insurance in general compares well with other offers in the market; one in five questioned said discounts at shops were a big influence when choosing a PCW; 15% said 2-for-1 cinema tickets and restaurant discounts tempted them with just 9% referencing free toys as a big influence.
Cashback offers narrowly edged free excess insurance – around 34% said cashback influenced their choice of PCW.
However, the biggest driver for customers is ultimately the best price for the insurance cover they wanted. More than half of drivers said they use more than one site and price was the main reason for choosing to buy.
Phil Paterson-Fox, Consumer Intelligence Key Account Director, said: “The big four PCWs compete fiercely with advertising budgets, offers and incentives and it’s always interesting to see the impact of new offers.
“Free excess insurance seems to be well received by consumers and certainly competes well with the current range of offers. Providing the best price and product however remains the best way to win customers and free excess insurance could struggle to beat straightforward cashback.”
Objections to free excess insurance included nearly a third of customers who said they would still be out of pocket because of their current excess and more than a quarter who are happy to fund their excess themselves.
A bigger hurdle which will take time to address is that only one in 10 drivers questioned had heard of a PCW offering free excess insurance and among those who had heard of it many did not know it came from GoCompare.
Consumer Intelligence’s Consumer research guide is available for download and enables companies to hear first-hand from customers on what they think, need and do as well as why and what next.