Co-op insurance is trying to increase transparency around the cost of car insurance by explaining where your annual premium is spent.
The insurer has decided to make a short video in an attempt to educate motorists after it’s recent research found that over half of people don’t understand how their premium is calculated and two fifths were unclear why their premium price could fluctuate from year to year.
Its research has also revealed that many people aren’t aware of some of the fundamental things that their premium is for. For example, 42% of drivers don’t realise it is in case another driver claims for personal injury, as a result of an accident that is their fault.
For four out of ten of drivers, motor insurance is reportedly a grudge purchase, with over a tenth (15%) of drivers saying that they would not buy motor insurance if it wasn’t a legal requirement.
In response to these findings, the Co-op Insurance has launched the first, in a series of three, animated videos which has been designed to explain how insurance pricing works, to improve transparency for its customers.
This follows a similar move earlier this year when it launched an online tool which was sent to over 10,000 home insurance customers, which was positively received, and fully explained how home insurance premiums are calculated.