11
June 2024
Attitudes to Insurance 2024
According to the latest Consumer Intelligence data, prices for home insurance have surged by over 40% in a year, while car insurance premiums have increased by over 56%. Pet insurance is also rising along with other types. Why? It’s mainly down to inflation. However, there are a variety of reasons – from increased demand, climate change, and the rising cost of repairs to an increase in claims – all of which significantly impact households and their finances.
With the costs of insurance rising coupled with the cost of living crisis, does this impact whether you will take out insurance policies? Has your attitude changed around insurance?
We commissioned a study to find out more about the UK’s attitudes towards various insurance products and the insurance market in general. We also wanted to see whether the cost of living crisis has impacted whether people are willing to pay out for insurance, as well as how much people trusted their insurance providers. We also wanted to know how people are searching for their next insurance policies, and what, if any, are their plans for covering emergencies if they aren’t covered.
Key Findings
- The most popular types of insurance purchased includes motor insurance (68%), home insurance (66%) and life insurance (37%)
- 16% of those aged between 18 and 24 have no insurance cover whatsoever
- A quarter of respondents (25%) say they only pay for mandatory insurance like home or motor insurance
- Over two-fifths (43%) just about trust their provider - stating that they’re confident they would pay out but feel they would make it difficult to make a claim
- When searching for a new policy, almost two-fifths (39%) said that the level of protection and details are most important, while just 30% said price was the most important factor
- Over a third (37%) have savings set aside for emergencies or unexpected expenses in absence of insurance
- 16% of those surveyed have no plan or savings in place in the event of an emergency and would decide what to do at the time
- One in eight (12%) respondents would cancel their pet insurance to save the money they spend on their premiums
- Over one in six (17%) have never purchased travel insurance and find it unnecessary
- Over a quarter (28%) feel that life insurance is an unnecessary expense
- Only 21% would consider taking out private medical insurance to reduce the long waiting times at their local GP survey and for hospital appointments.
What is the most popular type of insurance
We were keen to find out which type of insurance came out on top when it came to popularity among UK households. Unsurprisingly, the most popular types included motor insurance (68%), home insurance (66%) and life insurance (37%). Shockingly, 7% of those surveyed said that they had no form of insurance whatsoever.
We also wanted to break this down by age to find out how it differed between the younger and older generations and see whether there were any differences in priorities when it came to purchasing insurance.
Interestingly, the number of those who said they had travel, pet and health insurance policies was fairly low.
Despite being arguably the most important policy to have, the number of those with life insurance seems low for most age groups. Only one-fifth of gen zers have a life insurance policy and just over a quarter of those aged over 54 have one. Interestingly, over a third (38%) of millennials say they have taken out a life insurance policy.
Our results showed that the over 54s are the more cautious of the respondents with only 6% opting to not pay for insurance at all. Gen z are the riskiest, with a whopping 16% deciding not to get any insurance at all.
What kind of insurance do you currently pay for?
| Insurance Types | Total Number | Aged 18-24 | Aged 25-34 | Aged 54+ |
|---|---|---|---|---|
| Motor Insurance | 68% | 43% | 63% | 74% |
| Home Insurance | 66% | 38% | 52% | 81% |
| Life Insurance | 37% | 21% | 38% | 28% |
| Travel Insurance | 35% | 24% | 33% | 36% |
| Pet Insurance | 31% | 26% | 38% | 27% |
| Health Insurance Private/Dental) |
22% | 24% | 28% | 12% |
| Home Emergency and Boiler Cover |
21% | 14% | 15% | 28% |
| None | 7% | 16% | 10% | 6% |
How do people feel about insurance in general?
With costs increasing for households, we wanted to use the survey to find out how people think about insurance in general. We asked respondents to select which statement best described their current attitude towards the insurance policies available right now.
Nearly half (46%) said that they find it reassuring knowing that they’re protected for all aspects of life with their insurance policies, while over a quarter (26%) feel that there are too many insurance policies on the market and that they find it confusing which product is the best for them.
When it comes to costs, our survey highlighted that a lot of people felt they were too high. Over a quarter (26%) feel that policies come with too many over-priced add-ons and 25% stated that they would only pay for mandatory insurance.
Just over one-fifth (23%) don’t think their insurance provides good value for money as they said that insurance policies are far too expensive for what they actually provide.
Interestingly, 15% said that insurance companies don’t provide enough information on why it’s useful to have that particular insurance product. They also said they would like more information and clarity on why they would benefit from having it. This could be why there is a low percentage of people with non-mandatory types of insurance like life, travel and pet insurance.
The most unnecessary insurance products - according to consumers
We also wanted to find out whether they thought there were any insurance products that were unnecessary to purchase, with some surprising results.
Sitting in the top spot is bicycle insurance as over half (51%) said they thought that was the most unnecessary insurance product, and coming in at a close second was gadget or mobile insurance at 50%.
Coming in third place – perhaps unsurprisingly given we have an NHS service – over one in five (21%) felt that healthcare insurance was an unnecessary purchase.
The top 10 most unnecessary insurance products, according to consumers
| Number | Insurance Type | % |
|---|---|---|
| 1 | Bicycle Insurance | 51% |
| 2 | Gadget/Mobile Phone Insurance | 50% |
| 3 | Health Insurance (Private/Dental) | 21% |
| 4 | Landlord Insurance | 20% |
| 5 | Life Insurance | 18% |
| 6 | Pet Insurance | 18% |
| 7 | Home emergency & Boiler Cover | 17% |
| 8 | Travel Insurance | 16% |
| 9 | Home Insurance | 12% |
| 10 | Motor Insurance | 11% |
Do people trust their insurance provider to pay out in the event of a claim?
According to data from the Association of British Insurers, trust is low in insurers to act in their customers’ best interests and there are concerns in relation to clarity and transparency around policies. There are also fears that providers will share their personal information.
Our survey verified this as nearly half (43%) said they were confident their provider would pay out. However, they did feel like their insurer would make it difficult for them to make a claim. Just under one-fifth (17%) didn’t trust their provider and said they felt the insurer would find a way to not pay out a claim.
Only just under a third (29%) of those we surveyed said that they fully trust their insurance provider to pay out if they were to make a claim.
Searching for a new insurance deal
What is the most important factor for those looking for a new insurance policy and how do they find the best deals?
The survey asked what is the most important factor for those searching for an insurance policy, whether they’re renewing an old policy or looking for a brand new one, with surprising results.
We thought price would be the most important factor, however, price came second. The details and level of protection topped the list for people looking for an insurance policy, while a recognisable brand came third.
Brand loyalty and customer ratings didn’t factor at all, with only 4% of those surveyed claiming that loyalty to a specific brand and customer ratings were important to them.
When searching for an insurance policy, what is the most important factor for you?
- The details and level of protection (40%)
- The price (30%)
- I only choose from a reputable trusted brand, and would pay more for a recognisable brand (22%)
- The customer or Defaqto rating (4%)
- Brand loyalty (4%)
When it came to how consumers search for their next insurance policy, over half (51%) stated that they would use a combination of a comparison site and going directly to their insurer to find the best possible deal.
Our survey results confirmed that consumers prefer to shop around than stay loyal to one provider. A third (33%) said that they would only use a comparison site, like ours, to find their next deal as they feel that it’s the most convenient way to compare multiple prices and find a deal tailored to them.
Surprisingly, only 10% would go directly to their insurance provider. While the remaining 7% either didn’t have a policy or would use an insurance broker.
In what ways will consumers try to reduce their overall premiums when searching for a new insurance product or deal?
The rising cost of living plus increasing insurance costs has put a strain on many households’ spending. Last month household bills, such as water, broadband and council tax, rose significantly for families across the country. So we wanted to know how consumers will look to save money when they’re next looking for an insurance product or deal.
We’re currently living through a cost of living crisis, and as many household bills, such as water, broadband and council tax, have risen significantly last month, we wanted to know whether this would impact how they pay for their insurance.
We asked how consumers will look to save money when they’re next looking for an insurance product or deal. Over two-fifths said that they would consider reducing the number of add-ons to their policy to cut insurance costs, while 37% said that they’d try to contact their insurance provider directly to haggle a new price and get the best deal possible.
Surprisingly, a third (33%) would actually increase the excess they’d need to pay in the event of making a claim to try and reduce their premiums. And almost one in five said they would reduce the amount of cover they’d obtain.
Nearly a quarter (24%) said they would cancel their policy altogether and find a better deal on a comparison site.
As prices rise - are there any insurance products people will cancel to cut costs?
We also wanted to know whether increased costs and the cost of living crisis has had an impact on insurance spending. We asked whether people would consider cancelling, or not renewing, any optional insurance products to keep overall costs down.
Surprisingly, nearly a quarter (24%) revealed that they wouldn’t cancel their insurance, as they don’t want to take the risk of not being protected.
When it comes to the products that consumers would cancel; topping the list was income protection insurance (13%), pet insurance came a close second at 12% and travel insurance came in third place at 10%. Other insurance included health insurance, life insurance and home insurance.
Only 20% said that they’re still able to afford repayments on top of household bills.
Are there any insurance products you would cut to save money?
- Income protection insurance - 13%
- Pet insurance - 12%
- Travel insurance - 11%
- Health insurance (private healthcare/dental) - 9%
- Life insurance - 6%
- Home contents insurance - 5%
What would consumers without insurance do in an emergency?
For those who decided not to take out a non-mandatory insurance policy, such as life insurance, pet insurance or travel insurance, we wanted to know what they would do in the event of an emergency. If they were to fall ill on holiday or their pet needed emergency treatment, for example.
Despite the fact that we’re living through a cost of living crisis, over a third (37%) said that they had a savings pot aside for emergencies or unexpected expenses. However, while this shows forward planning, it could cause problems if the pot was emptied and another unexpected expense or emergency situation arose.
Shockingly, some respondents said they didn’t have a plan, while others admitted that they would turn to borrowing to help fund any emergencies or unexpected bills.
Nearly one-fifth (17%) said that they don’t have a plan and will decide what they’ll do if or when an emergency situation arises. While one in six (15%) would use a credit card to pay for unexpected bills, and 7% said they’d consider taking out a loan. A further 7% would borrow from friends and family if they needed any money.
Only 15% said that they would never risk not having insurance to cover themselves in an emergency.
For those without insurance - what will they do in the event of an emergency?
- I have savings set aside for emergencies or unexpected expenses - 37%
- I don’t have a plan and will decide if or when an emergency situation arises - 16%
- I would using a credit card to pay for unexpected bills and expenses - 15%
- I would never risk NOT having insurance to protect myself - 15%
- I would consider getting a loan to pay for unexpected bills and expenses - 7%
- I would borrow money from friends or family - 7%
- I would look at solutions such as equity release plans for money - 3%
Attitudes to individual insurance products
Black Box Insurance
A black box is a small GPS tracking device installed in your car, which monitors both how you drive and how often you drive. You won’t be able to see it, and it won’t affect your driving or vehicle performance, but it could help bring the cost of premiums down.
A third (33%) of those surveyed said they would only consider getting a black box if there was a significant reduction in cost.
There is a lack of awareness around black boxes, particularly around privacy, which our survey confirmed. As 13% said they wouldn’t get one fitted as they didn’t want to be tracked by their insurance company. Despite companies not actually tracking drivers in real time.
Travel Insurance
While travel insurance is optional - it is important to think about when booking a trip away. We wanted to know what the UK’s attitude to travel insurance was, and whether people think it’s an important purchase to make.
Nearly half (49%) admitted that they always buy travel insurance as it’s inexpensive and not worth the risk of not being protected.
Although, trust in providers is a concern for many. As 21% revealed that while they purchase travel insurance, they aren’t confident that their insurer would pay out if they were to make a claim.
Interestingly, almost one-fifth said while they’ve purchased travel insurance in the past, they would think twice about doing it again as they’ve never needed it. A shocking 17% said that they have never purchased travel insurance and feel that it’s an unnecessary purchase.
We also wanted to see whether different ages had different feelings around travel insurance. Gen z are less likely to be protected on holiday as nearly a third (30%) admitted that they’ve never purchased travel insurance and find it unnecessary. Millennials are just as risky as 21% said they’ve never had travel insurance either.
This was a lot lower when it came to those over the age of 54, and only 14% said they’d never bought travel insurance. While nearly two-thirds (60%) said they always buy it.
Life Insurance
Arguably one of the most important optional insurance products, life insurance tends to be something a lot of people leave until later on in life to worry about. Despite it being better, and cheaper, having it from a younger age.
We wanted to dig deep and find out more about the UK’s attitude to life insurance, and whether people thought it was worth having.
Shockingly, nearly a third (28%) said they felt life insurance was an unnecessary expense, and 17% would only take out a life insurance policy once they start a family or have dependents that rely on their income.
There are concerns around cost which could impact the number of people getting life insurance. As 13% would get one if they could afford to. Only 19% said they believe having a life insurance policy is important.
When we asked gen z, only 12% said they had a life insurance policy and 4% was due to it being a requirement of having a mortgage. A third (33%) said they would only take one out once they start a family. These numbers were similar for millennials.
Surprisingly, nearly half (47%) of those over the age of 54 feel life insurance is an unnecessary expense, and only 27% have one.
Private Medical Insurance
Another optional insurance product, which may have become more popular in recent years as the NHS continues to struggle with lack of staffing and high waiting times, is private medical insurance. We wanted to find out the UK’s thoughts on health insurance and whether it was something they’d consider getting.
Over a third (37%) said they felt it was unnecessary and were happy using the NHS. Nearly one in five (19%) said they would only consider taking out private medical insurance if they had a long-term illness or needed to visit the hospital regularly.
It looks like long waiting times have had an impact as over one in five (21%) said they’d consider taking out private medical insurance to reduce long waiting times for hospital appointments and to see their GP.
Commenting on the results, Liz Hunter, our Commercial Director said, “Despite there being a cost of living crisis, it’s clear that people still think paying for insurance is important and, while it can be expensive, it’s not worth the risk of not being protected.”
“From our data, we can see that people are becoming more careful with what they’re spending and that includes their insurance products. Naturally we’ll continue to see strong demand for motor, life and home insurance products, however we’ve seen significant rises in premiums over the past few years, meaning consumers will want to save money where they can.”
“We’re likely to see more people reassessing what they need from their insurance, and we’ll likely see non-essential products being dropped in favour of the mandatory policies. The data also outlined that consumers are more aware of the additional cover that comes with certain policies, which can significantly increase the price of the premium and are likely to be dropped to reduce the overall cost.”
“Until we start to see a reduction in costs for insurance, particularly motor and home products, we’ll continue to see their impact on household spending and likely make consumers reevaluate what insurance policies they need and what they can do without for the time being.”
