More than half of insurance customers have put more time into finding the most competitive deal as they try to keep costs down, research from Premium Credit shows.
More than half (53%) of insurance customers were found to spend increased time finding the best quality cover and price, compared with 43% when Premium Credit’s Insurance Index reported last year.
The majority (71%) of those spending more time finding the right insurance deal were motivated by rising prices.
However, 22% said that increased innovation in the insurance industry made it worthwhile spending more time shopping around, while 18% reported that increased use of digital technology made shopping around easier.
Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found that the proportion of people using some form of credit to pay for one or more insurance policy increased to 70%, compared with 66% in March 2022 and 69% in October 2021.
Of those who used credit, 44% borrowed more to ease financial pressures, while 18% increased borrowing because credit had become cheaper.
Owen Thomas (pictured), chief sales officer at Premium Credit, said: “The rising numbers of insurance customers spending more time on shopping around reflects the rise in prices across the economy in general.
“The insurance industry has made it easier for people to shop around and innovation across the sector makes comparing prices and levels of cover worthwhile.
“Premium finance is specifically designed for insurance buyers to help make important insurance policies affordable and improve cashflow.
“It is a very cost-competitive means for consumers to buy insurance and better manage their finances through spreading payments.
“At a time when household finances are under pressure it can be a good alternative to other forms of credit.”
