Allianz, one of the biggest insurers in Europe, is anticipating that 1 in 10 drivers will cut back their auto insurance coverage this year. In an effort to retain customers, they have launched a new service called, “Your Cover Car Insurance”. Exclusive to online users, Your Cover is designed to help motorists see if they can keep the same amount of coverage they currently have but for a lower price.
An independent study conducted on behalf of Your Cover showed that 10% of drivers are looking to cut back on their insurance coverage as the result of trying economic times. The study says that drivers are most interested in removing legal protection or courtesy cars from their policies and to increase their voluntary excess.
“51% of the people in our survey said that shopping for insurance online had made it easier to find cheaper coverage,” says Andy James, director of direct customer marketing for Allianz. He warns that finding a policy online may be beguiling. Motorists may find a better policy but could be aligning themselves with what James calls “scorpion” insurers. “There’s a sting in the tail,” says James. This sting can come in the form of cancellation fees and payments from direct debit, provisions that make the cost of coverage much higher over the long-run.
Your Cover is encouraging consumers to shop around online but to be conscious of the risks associated with certain policies. With so many expected to cut coverage, Your Cover is hoping to help consumers keep coverage that they may need without having them pay more than they need to for protection.