LONDON, Dec. 21, 2010 /PRNewswire/ — Car and home insurance customers are willing to swallow over 1.5 billion pounds a year in premium increases before they shop around for a better deal, new research from Virgin Money shows.
The average insurance customer will accept an 8.13% across-the- board rise in their annual motor, home contents and buildings premium before they decide to switch to a more competitive deal. That’s the equivalent of paying almost 13 months worth of premiums for 12 months of cover.
Virgin Money’s research also shows that 45% of policyholders don’t shop around, while 55% always do, and they spend an average of five hours and twenty five minutes each year looking for a better deal.
Virgin Money has launched a new insurance proposition with Capita Group to give customers a better deal automatically, without the need to shop around. Using a panel approach including insurance giants Aviva, Axa, Fortis, Sabre, CIS, Groupama and LV, customers can be assured they will get the most competitive deal available both at purchase and renewal, with Virgin Money moving customers between panel members automatically if renewal quotes aren’t competitive.
With costs rising throughout the industry as a result of a rise in personal injury claims and losses by insurers, the Virgin Money research shows the average car insurance rise that customers will accept is 7.4%. It would take a rise of 8.6% for contents insurance and 8.4% for buildings insurance to prompt insurance holders to potentially move from their current deal.
With the average comprehensive car insurance costing close to 800 pounds, if all of the UK car policyholders that shop around moved from their current policy before that 7.4% trigger, over 1.4 billion pounds a year could be saved on car insurance renewals alone.
With home contents insurance costing an average of 73 pounds and buildings insurance costing around 133 pounds, triggers of over 8% on home contents and buildings insurance could potentially lead to savings of over 103 million pounds each year.
Scott Mowbray, spokesman at Virgin Money, said: “Searching for insurance renewal quotes can be a bit of a chore but a massive 1.5 billion pounds each year could be saved. We’ll always find the best price from our panel of home and car insurers and each year we’ll double check to ensure the price is still competitive and move customers onto a better deal if it isn’t. We can have cover in place in a matter of minutes and you can build the level of cover to suit your budget with bundles of optional extras.”
Virgin Money Car and Home insurance is available at http:// uk.virginmoney.com/virgin/
About Virgin Money:
Virgin Money is Virgin’s financial services arm and was established in 1995 as a joint venture between the Virgin Group and Norwich Union.
In 1997, Virgin Direct Personal Financial Services Limited launched The Virgin One Account, a joint venture with The Royal Bank of Scotland that offered the UK’s first current account mortgage direct to the retail market. In 2001, RBS bought out the Virgin Group’s stake in the joint venture.
In April 2004 the Virgin Group took 100% ownership of Virgin Money.
Virgin Money currently has over 2.5 million customers and offers Payment Cards (Credit Cards & Prepaid Cards), Savings and Investment products (Stakeholder Pensions, Children’s Pensions, Employers Pensions, FTSE Tracker ISA, Bond & Gilt ISA, Climate Change ISA, Cash ISA, and Unit Trusts), General Insurance products (Motor, Home, Travel, and Pet) and Life Assurance products to the UK market.
Virgin Money’s brand ambition is to make “everyone better off” – this philosophy underpins our approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders.
Virgin has signed a five-year deal to be the official sponsor of the London Marathon, the biggest annual fundraising event in the world. The inaugural Virgin London Marathon was on 25 April 2010. The 2011 Virgin London Marathon is to be held on 17 April 2011. Virgin Money, the financial services division of the Virgin Group is leading the London Marathon sponsorship with the ambition to help runners raise 1/4 billion pounds over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving.
SOURCE Virgin Money
Originally published by Virgin Money.
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