The number of insurance customers putting more effort into shopping around for the best cover has increased sharply as people look for the best deal available, Premium Credit, has revealed.
62% of customers said they were working harder to find the best price and quality of cover, compared with 53% in last year’s Premium Credit Insurance Index.
Around 66% of those spending more time on comparing prices and quality of cover were motivated by rising prices across the economy.
However, nearly a quarter (24%) said increased innovation in the insurance industry has made it worthwhile spending more time on shopping around, and 20% had become more confident using digital technology, finding it easier to shop around.
Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found that the number of people using some form of credit to pay for one or more insurance policy increased marginally to 71%, compared with 70% in March 2023.
One in seven (14%) adults found it more difficult to secure credit such as mortgages, credit cards or loans since the cost-of-living crisis started.
One in five (20%) said they have been turned down for forms of credit during that period, with 12% saying a credit card application had been rejected.
Owen Thomas, chief sales officer at Premium Credit, said: “The numbers of insurance customers spending more time on shopping around are growing rapidly which is inevitably due to the impact of the cost of living crisis affecting the economy in general.
“The insurance industry has however 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 while also being more convenient.
“It is a very cost-competitive means for consumers to buy insurance and better manage their finances through spreading payments.
“It is firmly established as a good alternative to other forms of credit.”
