Less than the cost of a pint of beer, why are the Brits holding back on contents insurance?
Contents insurance is one of the most exclusive insurance policies bought in the UK. And this is logical, since who would not want to cover their belongings against risks beyond their control for a small fee? Despite this, 25% of Britons do not have this coverage, despite the fact that it costs less than half a liter of beer per month. So what is hesitation about?
We recently conducted a survey of the British public to better understand the nation's attitudes towards content insurance. While some of the results were as expected, like most Brits have content insurance, there were some surprises and drastic differences based on age. Before we dive into the results, let's first take a look at what content insurance is.
What is content insurance and why do people need it?
Simply put, contents insurance covers your belongings in your home against risks like fire, theft, or water damage. Your insurer will compensate you if your belongings are lost or damaged as a result of one of these hazards. But modern policies can offer more protection than this by covering risks such as accidental damage and theft of possessions that you have on you while you are away from home. It's also incredibly cheap, with some fees starting at less than £ 3 per month. Still, not everyone is convinced. To better understand this, we will analyze the results of our survey.
Addressing the price myth
Suppliers see price as a key factor in gaining new customers and retaining existing ones, and this is reflected in the competitive prices offered.
However, one of the most anticipated results of the survey was that 33% of respondents cited content insurance as too expensive. But where does this idea come from? Let's put things in context: think about the cost of content insurance in relation to the value of the assets that people own. A Macbook Pro 13.3 costs £ 1,349.97 at a leading UK retailer. If you paid for content insurance at a rate of £ 3 per month, it would have to pay over 40 years to reach its value. If it is stolen, you will instantly lose it and have to either replace it or live without it, which we are sure you will agree would be a total disaster. People are likely to misjudge the value of their belongings, at over £ 35,000, significantly more than the value of a Mac.
The general feeling that content insurance is expensive does not seem to match reality. Contents insurance is actually incredibly cheap, starting at less than the cost of a pint of beer.
Deciphering the mystery of content insurance
Despite content insurance being one of the most popular and common policies in the UK, more than half of those who responded to Getsafe's survey said they did not quite understand what content insurance is. This result is not only somewhat surprising, but it probably explains to a large extent why a quarter of respondents do not have content insurance and also why a third think it is too expensive.
Additionally, there appears to be a generational divide regarding the understanding of content insurance. Only 11 percent of 18 to 25-year-olds said they had a good understanding of what content insurance covers, compared to 61 percent of those 55 and older. This suggests that insurance plays a larger role in the lives of older generations, even if the coverage offers equally important benefits for the young. So how can the insurance industry overcome this lack of knowledge and hesitancy when it comes to content insurance, particularly among the younger generations?
What will change the status quo?
The responsibility for getting people excited and knowledgeable about insurance rests with the service provider and not the consumer, as with any product or service. Insurers must act to win new customers and keep existing ones.
The insurance age gap is a great place to start. For too long, the insurance industry has been negatively perceived by the general public. Many people put off buying a policy until later in life, when they feel like they need it. Reaching the next generation of customers is high on the agenda of any company looking to remain competitive. And this change is already underway.
At Getsafe, we are innovating to make insurance more digital, flexible and simple, as well as offering consumers more personal and customizable coverage. The people expect the same online experience they get from other service providers, like Netflix or Amazon. This is slowly becoming a reality, and we highlight this by offering customers daily cancellation, personalized insurance content, chatbots, transparent pricing, and a fully app-based experience.
Innovation is the key to future success
Only by delivering this kind of digital experience, first on mobile devices, will insurers be able to serve the new generation of insurance customers and get them excited about insurance. There is a lot of work to be done, but progress is slowly beginning to accelerate. Getsafe leads the insurance revolution, are you on board?
Cover your universe today
As you can see, content insurance offers you real value, no matter what you own. Why not sign up today, starting at just £ 2.71 per month?