Affordability, Brand Reputation Top Preference For Motor Insurance Customers
High demand for add-ons like roadside assistance, engine protector and return to invoice during monsoon season
According to a report published by Policy Bazaar 29 per cent of customers consider affordability as their top priority, while emphasising the need for cost-effective solutions. The report further highlighted 21 per cent of customers prioritize the brand's reputation and 19 per cent value excellent customer service.
Additionally, 16 per cent look for comprehensive coverage features, whereas claim process and settlement allure 15 per cent.
The insurance customers also consider certain add-ons while choosing the right insurance product. Roadside assistance emerged as a top priority indicating the importance of emergency support.
Zero depreciation, engine protector, consumables, key lock replacement, invoice price cover are also few other factors while considering the additional benefits.
The report also highlighted tha more than one in three customers opt for Pay As You Drive plans (PAYD), while three in four renew them, indicating a shift towards personalised motor insurance coverage.
Interestingly, the interest towards PAYD plans is highest in the South (55 per cent) and lowest in the North (36 per cent). Top cities using PAYD plans are Delhi (8 per cent), Bangalore (5 per cent), Mumbai (3 per cent), Pune (2 per cent) andGurgaon (2 per cent).
While highlighting the geographical distribution, the report stated that metro cities have highest penetration of motor insurance customers with upto 40 per cent followed by 36 per cent and 34 per cent in tier-2 and tier-3 cities respectively.
There has been a significant increase of 13 per cent in online adoption by residents of tier-2 and tier-3 cities which was previously lower. This has been driven by growing insurance awareness and the advancement of digital technology.
