| If your mother was anything like mine, she probably | | | | get more customers. The cost of these activities is |
| drummed into you from the first time you started | | | | invariably covered by the charge for their products. |
| spending your own money that "You get what you | | | | You can see the cost of marketing and branding on |
| pay for!". The implication of this is, of course, that | | | | every supermarket shelf - generic brands are often |
| more expensive products are better quality, and | | | | the same quality product, but cost as little as a third |
| cheaper ones are lower quality. Unfortunately for | | | | of what brand name products cost, because they |
| people like my mother, this mode of thinking is now | | | | have no packaging design, no branding and no |
| completely outdated. New business and revenue | | | | marketing associated. |
| models have created a plethora of lower cost | | | | Car insurance companies can give genuine discounts |
| options, and plenty of legitimate freebies can also | | | | when they forego the bells and whistles that |
| now be found in the world. Car insurance is one of | | | | marketing usually requires, and simply have a great |
| these lower cost option quality products. Forward | | | | quality product. You don't need to be worried that a |
| thinking insurance companies with a keen sense of | | | | cheaper quote from this type of company will be |
| technology (and how to use it to serve their | | | | lower quality - they simply lower their own costs, and |
| customers) have made some real progress in bringing | | | | pass the savings on. |
| down the price of car insurance. We look at how to | | | | Automation |
| identify genuine car insurance discounts, that won't | | | | Labour is another major cost in almost any company. |
| reduce the 'quality' of your policy at all. | | | | However, the prevalence of business online has |
| Personalisation in car insurance | | | | created a wealth of possible solutions to the dilemma |
| Personalisation is one of the biggest things an insurer | | | | of increased business requiring increased staff. There |
| can do to help bring down the price of your policy. | | | | are now plenty of ways a car insurance company |
| The general insurance customer usually doesn't realise | | | | can automate its activities online, and pass the |
| that insurance companies often make worst-case | | | | lowered costs onto their customers. These include: |
| assumptions about how they, the customer uses | | | | - Automated insurance quote facilities |
| their car (or in the case of home insurance, the risk | | | | - FAQ sections that help answer customer queries |
| inherent in the home's location). These assumptions | | | | without ongoing staff input |
| often drive up premiums by a substantial amount. For | | | | - Automated policy manager facilities, allowing |
| example: | | | | customers to make their own changes and input |
| - If you work at home and don't drive your car much | | | | claims without speaking to a customer service rep. |
| - If you are a stay-at-home parent | | | | Going online |
| - If you work part time | | | | Car insurance companies that operate online have |
| - If you don't use your car for business purposes | | | | enormously reduced overheads. The cost of real |
| during the day | | | | estate is almost entirely absent, and all of the |
| Then you inherently have lower risk of having an | | | | associated bills. Online marketing is also much less |
| accident. Insurance companies that ask these types | | | | expensive that traditional offline avenues like |
| of questions about your car use are personalising | | | | television and newspaper advertising... and much more |
| your insurance policy... and often giving you discounts | | | | effective. The move to an online environment |
| off standard rates because of your answers. | | | | allows insurance companies to greatly reduce their |
| Simplicity - the budget mentality | | | | premium prices, without actually reducing the amount |
| Insurance companies usually make an enormous | | | | of cover they provide. |
| investment in marketing and branding, in an effort to | | | | |