UK Motor Breakdown Insurance Consumer Research Report 2019 Featuring AXA, Allianz, Call Assist, Green Flag, LV, MIS Group UK, RAC, The AA

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Jul 15, 2019, 11:45 ET

DUBLIN, July 15, 2019 /PRNewswire/ -- The "UK Motor Breakdown Insurance Consumer Research Report 2019" report has been added to ResearchAndMarkets.com's offering.

Almost half of consumers have breakdown cover. Almost half of consumers own a motor breakdown policy, which means almost six-in-ten drivers have breakdown cover. Ownership of breakdown cover tends to rise with age, income and social grade.

Consumers with breakdown cover show a preference for buying standalone policies, rather than buying cover bundled with other products (e.g. with packaged bank accounts or motor insurance) and they also prefer to pay for their cover annually rather than on a monthly basis.

Motor breakdown cover holders can offer some cross-selling opportunities, outside of the obvious one of cross-selling motor insurance. They have high levels of ownership of home insurance for example. There are also opportunities to sell insurances like mobile phone and gadget insurance without having to win business from incumbent providers.

Key facts

46% of consumers or 58% of Drivers have motor breakdown cover.
48% of consumers with motor breakdown cover are aged 45+ and 62% are from the ABC1 social grades.
64% of cover holders have a standalone policy.
60% of adults with breakdown cover pay for it on an annual basis.

Key Topics Covered:

1. EXECUTIVE SUMMARY

Almost half of consumers have breakdown cover
Resulting in a large but slow growing market
Most cover holders are risk-averse and self-reliant insurance buyers
Just over half show an online preference
The start of the customer journey is normally a Deja vu experience
It's wrong to think switching is pro-active and renewing is passive
It's an online world in terms of finding breakdown deals
Cover is marginally more important than price
Owning breakdown cover is a good experience
If the price is not right, the customer relationship ends

2. INTRODUCTION

3. PROFILE OF THE COVER HOLDER

Key findings
Almost seven-in-ten adults own a car
And almost one-in-ten have use of a car they do not own
Meaning over three-quarters of adults are Drivers
46% of adults have motor breakdown cover
Breakdown cover ownership strongly related to age, social grade, and income
Motor breakdown owners are often mature and relatively affluent
Motor breakdown policies primarily cover smaller cars
Six-in-ten cover holders buy standalone policies
And six-in-ten pay for their cover annually
Cross selling Opportunities

4. HOW COVERED CONSUMERS APPROACH INSURANCE

Key findings
Risk aversion and value perceptions
Confidence and self-reliance
Predisposition toward an online customer journey

5. THE CUSTOMER JOURNEY BEGINS

Key findings
Around eight-in-ten policyholders are repeat purchasers
Switching motor insurance often results in a switch of breakdown cover
And renewing a motor insurance policy tends to result in a breakdown cover renewal
Almost six-in-ten First-Time Buyers already own motor insurance
Almost seven-in-ten breakdown cover holders co-ordinate their acquisition actions
The importance of the renewal prompt
Renewing does not mean being passive
The actions taken when renewing motor insurance drives renewal actions for a breakdown
And renewing also means haggling for a better deal

6. BUYING A POLICY: FINDING THE RIGHT DEAL

Key findings
Price comparison websites: the prime research resource
PCWs are favoured because they are easy to use and give the info required
Motor Breakdown Insurance
Brokers need to improve consumer perceptions of trust
The PCW dominance is here to stay

7. PRICE, COVER OR BRAND

Key findings
Five buying strategies
Older adults have a cover bias
You can focus on cover or brands and still drive a hard bargain
But are cover holders in a position to negotiate?
It's the volume of paperwork that limits knowledge

8. BEING A POLICYHOLDER

Key findings
Cover holders are a happy bunch
Because few have encountered any problems
Many cover holders now manage their cover online
12% of cover holders have claimed within the last year
Claiming is a satisfying and smooth process

9. ENDING THE JOURNEY: CUSTOMER LOYALTY AND SWITCHING

Key findings
Loyalty to the breakdown provider is stronger than it is to the motor insurance provider
One-quarter of cover holders are thinking of switching
Switching is strongly price led

10. MARKET SIZE AND TRENDS

Key findings
Market Drivers
Three big players dominate the market

Companies Mentioned

AXA
Allianz
Call Assist
Green Flag
LV
MIS Group UK
RAC Ltd.
The AA

For more information about this report visit https://www.researchandmarkets.com/r/z0t9zr

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

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SOURCE Research and Markets