Brits Waste GBP1.5 Billion by not Driving a Hard Bargain on Car and Home InsuranceBy Virgin Money, PRNE
Monday, December 20, 2010
Virgin Money Launches new Home and Car Insurance Deal With Capita Group
LONDON, December 21, 2010 - Car and home insurance (uk.virginmoney.com/virgin/home-insurance/)
customers are willing to swallow over GBP1.5 billion a year in premium
increases before they shop around for a better deal, new research from Virgin
The average insurance customer will accept an 8.13% across-the-board rise
in their annual motor, home contents and buildings premium before they decide
to switch to a more competitive deal. That's the equivalent of paying almost
13 months worth of premiums for 12 months of cover.
Virgin Money's research also shows that 45% of policy holders don't shop
around, while 55% always do, and they spend an average of five hours and
twenty five minutes each year looking for a better deal.
Virgin Money has launched a new insurance proposition with Capita Group
to give customers a better deal automatically, without the need to shop
around. Using a panel approach including insurance giants Aviva, Axa, Fortis,
Sabre, CIS, Groupama and LV, customers can be assured they will get the most
competitive deal available both at purchase and renewal, with Virgin Money
moving customers between panel members automatically if renewal quotes aren't
With costs rising throughout the industry as a result of a rise in
personal injury claims and losses by insurers, the Virgin Money research
shows the average car insurance (
uk.virginmoney.com/virgin/car-insurance/) rise that customers will
accept is 7.4%. It would take a rise of 8.6% for contents insurance and 8.4%
for buildings insurance to prompt insurance holders to potentially move from
their current deal.
With the average comprehensive car insurance costing close to GBP800, if
all of the UK car policy holders who shop around moved from their current
policy before that 7.4% trigger, over GBP1.4 billion a year could be saved on
car insurance renewals alone.
With home contents insurance costing an average of GBP73 and buildings
insurance costing around GBP133, triggers of over 8% on home contents and
buildings insurance could potentially lead to savings of over GBP103 million
Scott Mowbray, spokesman at Virgin Money, said: "Searching for insurance
renewal quotes can be a bit of a chore, but a massive GBP1.5 billion each
year could be saved. We'll always find the best price from our panel of home
and car insurers and each year we'll double check to ensure the price is
still competitive and move customers onto a better deal if it isn't. We can
have cover in place in a matter of minutes and you can build the level of
cover to suit your budget with bundles of optional extras."
Virgin Money Car and Home insurance is available at
About Virgin Money:
- Virgin Money is Virgin's financial services arm and was established in 1995 as a joint venture between the Virgin Group and Norwich Union. - In 1997, Virgin Direct Personal Financial Services Limited launched The Virgin One Account, a joint venture with The Royal Bank of Scotland that offered the UK's first current account mortgage direct to the retail market. In 2001, RBS bought out the Virgin Group's stake in the joint venture. - In April 2004 the Virgin Group took 100% ownership of Virgin Money. - Virgin Money currently has over 2.5 million customers and offers Payment Cards (Credit Cards & Prepaid Cards), Savings and Investment products (Stakeholder Pensions, Children's Pensions, Employers Pensions, FTSE Tracker ISA, Bond & Gilt ISA, Climate Change ISA, Cash ISA, and Unit Trusts), General Insurance products (Motor, Home, Travel, and Pet) and Life Assurance products to the UK market. - Virgin Money's brand ambition is to make "everyone better off" - this philosophy underpins our approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders. - Virgin has signed a five-year deal to be the official sponsor of the London Marathon, the biggest annual fundraising event in the world. The inaugural Virgin London Marathon was on 25 April 2010. The 2011 Virgin London Marathon is to be held on 17 April 2011. Virgin Money, the financial services division of the Virgin Group is leading the London Marathon sponsorship with the ambition to help runners raise GBP1/4 billion over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving.
For further information: Grant Bather at the Virgin Money Press Office, Grant.bather at virginmoney.com +44(0)207-111-1012; Kevan Reilly/Chris Jarvis/Toby Clark, Citigate Dewe Rogerson, firstname.lastname at citigatedr.co.uk +44(0)207-638-9571
Tags: December 21, London, United Kingdom, Virgin Money