Why the motor vehicle insurance market is set to experience high demand

With new ways of powering a car and driver assistance technologies emerging, the motor vehicle insurance market is set to experience high demand from customers looking to insurance suppliers to provide them with relevant products.

Image Credit

The Association of British Insurers calculated that the UK motor insurance industry paid out £10.6bn for motor claims like replacement, repair, or personal injury in 2017, according to Insurance Age. The numbers of cars on the road and accidents happening aren’t likely to go down, so demand for motor insurance is set to continue to be high.

Driver assistance technologies

With the driver handing over greater responsibility for their driving decisions in the new world of driver assistance systems, our relationship with insurance needs to change as well. We will need insurance providers to explain the difference in policies for autonomous vehicles compared to a traditional petrol-powered and person-controlled car.

An expanding area of the motor trade is electric car sales, which continued to increase to a 1.1% share of the market in 2015 and steady growth expected as consumers search for a car that will help them reduce running costs and the impact of their journeys on the environment.

Dealers looking to retail the next generation of cars will need the right motor trade insurance as well. Suppliers such as Quote Me Today https://www.quotemetoday.co.uk/motor-trade-insurance/ understand the importance of motor trade insurance and can help you find the right protection.

Image Credit

Ownership models changing

Our relationship with the car is changing, too. Car ownership is declining, particularly with urban dwellers and younger people who do not see the cost of car ownership in a world of car sharing and ride hailing.

The way people search for motor insurance is changing, too. Many more people are searching for a good deal online. With new start-ups in the market, customers have new models of motor insurance providers to choose from, and they are showing with their purchases that having the option to buy an insurance package that better suits their individual needs is attractive.

Demand is expected to remain high, despite car insurance prices increasing by +1% (+£8) over the past quarter for the first time in twelve months, according to the latest Confused.com car insurance price index.

Leave a Reply

Your email address will not be published. Required fields are marked *