A GlobalData survey signifies that shopper inertia stays a key function of the UK motor insurance coverage market, with many policyholders failing to behave at renewal regardless of partaking with the market. This behaviour contributes to persistent overpayment, as a major proportion of consumers default to their present supplier quite than switching to extra aggressive gives.
GlobalData’s 2025 UK Insurance coverage Client Survey discovered that 24.6% of respondents renewed their motor insurance coverage with out purchasing round, whereas an extra 44.3% shopped round however in the end remained with their present insurer. In distinction, solely 27.6% switched to a brand new supplier. These findings spotlight that even when customers actively interact with the motor insurance coverage market, switching charges are comparatively restricted. This implies that behavioural inertia and perceived switching friction proceed to exert a major affect at renewal.
Go.Evaluate has additional highlighted the dimensions of this situation, estimating that 24 million UK customers could possibly be overpaying for insurance coverage as a result of auto-renewal, as many fail to buy round or act on obtainable financial savings. Its findings reinforce issues that automated renewal mechanisms coupled with low switching charges are contributing to widespread inefficiencies available in the market, thus limiting the extent to which aggressive pricing advantages are handed on to customers. For insurers, these dynamics signify each a problem and a possibility. Whereas buyer retention stays excessive as a result of inertia, rising scrutiny round truthful pricing and shopper outcomes might place strain on suppliers to enhance transparency and engagement at renewal. On the identical time, comparability platforms and digital instruments are well-positioned to seize worth by lowering friction within the switching course of and inspiring extra lively shopper behaviour.