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Over 50 per cent of drivers stay with the same car insurer for a year

More than half (56 per cent) of drivers in the UK have stayed with their current car insurance company for the last 12 months, according to recent statistics.


However, retention rates vary greatly between different car insurance companies with some insurers retaining 80 per cent of their policyholders annually, while some barely manage to keep a third of their customers for a second year. The figures were collected by questioning 5,000 car insurance policyholders in the UK.


Good retention rates are essential to profitability for car insurance companies as insurers who retain a large proportion of policyholders dont have to spend extra money investing in advertising to attract new customers.


One way in which insurance companies are striving to retain customers is by offering them deals on other types of cover alongside their car insurance policy, such as home and travel insurance, which will boost retention rates as well as customer loyalty.

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