If I was a Car Insurance company, what could I do to make you stay another year?

Question

Except give you free cover!

Answer 1

Lower my possible excess in the second year if no claims in the first year... or throw in protected no claims bonus for free... oh and try not to sneakily remove things from the policy which my current insurer has tried to do!  

obviously it also depends on how good they were in the first year.  I stuck with mine because they were really good in dealing with an incident for me last year and got me all my excess and costs recovered and an excellent courtesy car so I felt they were good enough to stick with.

Answer 2

offer good cover at a competitive price with good customer service on top.

Clarkworld - I have never had an accident and I say customer service is important. I work in insurance and I know customers will pay slighty more if they know they are receiving good service rather than switch to someone a few pounds cheaper.

Answer 3

At the end of the year, if you had no acccidents....I would reimburse you one month payment..YOU WILL STILL COME OUT WAY AHEAD....TRUE?

Answer 4

give me the best cover at the best price

Answer 5

Give your client the best offer.. Best coverage and reasonable payments.  

Answer 6

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Answer 7

Don't bump the cost up so much.  Mine went up about £150 (no claims made), so I just cancelled it and got it online with the same company for about £180 less.

Answer 8

Lower coverage is what most people look at.  Then next I would day Customer Service.  The only people who say customer service are ones who got in an accident, anyone who didn't will only say price.

Answer 9

When it comes to lowering premiums, whilst yes you have to be competitive, there’s no getting away from the fact that you have to ‘write for profit’, there’s no point in retaining customers if you end up losing money.

Motor business, especially in the UK, is very competitive. The margins are tight. So it’s about getting your pricing structure right and sticking with it… let the other guy write the business at a loss, in a years time he’ll have made a loss and have to either raise prices significantly or go bust. If he doesn’t make a loss… re-examine your pricing model!

As an example of how tight margins are, take Mary P’s suggestion of refunding 1 months premium for a claim free year. Seems fair and reasonable doesn’t it.

Well yes it does until you realise that the 5 largest motor insurers in the UK (comprising > 50% of the market) have a combined operating ratio of 99% !

That means for every £100 in premium they received, they only made £1 underwriting profit. The rest going on claims (about 75%), claims handling expenses (about 8%) Non-claims admin costs (around 7%), reinsurance, and other costs. So if you gave them back a month’s premium of £8… you’d make a £7 loss. OK I know it's a bit more complex than that... but the point stands.

Since the same goes for any ‘top-line’ financial incentive, there isn’t a lot you can do and still make money on the deal.

So really what it all boils down to is having the most accurate pricing model possible to offer the lowest profitable premium and giving the best customer service you can for the least amount of money. If you can crack that successfully you will go far!

Answer 10

Under cut the best quote I'd found.

Answer 11

Be the cheapest - that's it!

And not charge £25 for changing vehicle, address or drivers! Thieving Post Office b******s!