Consumers only switch insurance if they save at least €50
CONSUMERS will not switch home or motor insurance unless they can save at least €50, a new survey reveals.
If the saving is €20 or less, then nine out of 10 consumers will stay with the same provider.
Insurance experts have responded to the finding saying that inertia is costing consumers.
The survey of 750 people conducted by online broker Getcover.ie found that four out of 10 consumers will not change motor or home insurance policy to another provider unless they can save at least €50.
Arlene Tierney of Getcover.ie said price discrepancies across the board meant that people could be paying hundreds of euro more than their neighbours for the same financial protection.
"Although a saving of €20 might not seem like too much it can add up to a lot over time, particularly if a household is paying for several different insurance policies."
She said inertia was costing households a huge amount of money.
"What the survey reveals is people's reluctance to change – four out of 10 of our respondents say they wouldn't even change for a saving of €50.
"Now, if you offered your friend €50 I'm sure they would be delighted with you. So why then do they not want this 'free money' from the insurance companies?"
One in five people held back from changing insurance provider because they thought there would be a lot of paperwork involved.
Ms Tierney said it was unlikely there would be a lot of paperwork for people moving from one provider to another for home or motor insurance.
"Unless you have a poor claims history switching can usually be done with ease and with minimal effort from the consumer."
But the survey also found that 17pc of consumers would be concerned about the reputation of the new insurer.
The shutdown of motor insurer Setanta Insurance and the banking scandals have made people wary about financial companies, Ms Tierney said.
"The industry as a whole has a way to go to regain people's trust," she said.
There is huge competition in the insurance industry and ultimately this should bode well for consumers in terms of pricing. Looking for the best deal on the market at renewal time will invariably save you money," Ms Tierney added.