Cash-strapped consumers want flexible car insurance policies, research shows

Motorists have suggested they have to work hard in order to get the best price on their insurance. 

New research by Consumer Intelligence shows that one-fifth of drivers want their insurer to offer them the best price up front, so they do not have to go to price comparison sites to do the hard graft themselves. 

Others complained about having to haggle directly with their insurer to get the best deal.

Close to 6,000 drivers were questioned in the 'Voice of the Customer Motor Insurance Survey' and the results reveal that what consumers are really looking for is flexibility with their policy. 

The study found that people are twice as likely to renew if their insurers offer them a more flexible deal, rather than just simply a cheaper one. 

More than a third (36 per cent) of respondents said they would prefer to have perks such as bonuses for not claiming, or policies whereby good driving is rewarded. In comparison, just 15 per cent called for price cuts on their policies. 

Other ideas that consumers would like to see are flexible pricing models that would allow policy-holders to pay weekly or quarterly. 

Head of marketing at Consumer Intelligence Katy Ratcliffe suggested that motorists don't want to have to switch insurance providers if they can help it, as it's often a hassle to do so. Instead they are looking for their insurer to offer them value and they want to create a good relationship with them by building trust. 

"What stands out is the need for consumers to feel they are being treated fairly, which is in line with what regulators want. It would seem there is a golden opportunity to increase customers' satisfaction and regulatory compliance," she said. 

There is some good news for young motorists looking to purchase insurance, as drivers aged under 25 were the only demographic where policy prices fell. Between May 2014 and May 2015 premiums for this group dropped by 10.3 per cent. 

Meanwhile, the average cost of premiums has risen by 0.3 per cent in the past 12 months. More mature drivers fared worse, with those aged 50 and over seeing their premiums rise by 5. 2 per cent over the last year.