In this blog honcho CMO Graeme talks about why we believe consumers are missing a trick in their approach to buying insurance.
When you buy a new car, you probably search around to get the car that meets your needs - model, colour, size of engine, size of boot.
When you buy a TV, the chances are you make sure it is the right size for your room, and might check whether it has Netflix or iPlayer built in. Or if you’re shopping for a phone, you make sure that the network has coverage where you need it.
When you choose an electricity or gas provider, you most likely check out their reviews to make sure that - if you need to contact them - you’re going to get good service.
When most people buy motor insurance, the primary thing that they are looking for is…. price. Specifically, the absolutely lowest price.
And that’s it.
This is a peculiar situation that seems unique to the insurance market, and is a result of years and years of conditioning by the big price comparison websites that cheap is good and cheapest is best.
Indeed their name gives it away - price comparison.
But when you think about it, this is a pretty strange way of thinking when it comes to insurance, something that - by definition - you need to absolutely be there for you if you’re unfortunate enough to have to use it.
Motor insurance is of course compulsory, but that does not mean that you should pay any less attention to the features that it has, and how closely they match your needs, than you would for any other purchase.
In the same way that you’re unlikely to buy the absolutely cheapest TV irrespective of whether it will do what you want, we believe that drivers really shouldn’t be focusing their insurance buying decisions solely on price.
At honcho we’re on a mission to change the way we all think about insurance, to make sure that we’re helping drivers to get the insurance cover that is right for them, and then to get that cover at the best possible price. We want to make sure that if you do need to call on your insurance it is actually fit for purpose for what you need. Super-cheap cover is no good if, should you have to claim, you don’t have the backup that meets your needs.
When you use the honcho app you’ll see that we don’t automatically rank our results by price - they are ordered by what closest matches what you told us you need. You can still take a look at the offers through the lens of price, of course, but you’ll at least be informed as to what the relative cover of each quote is and can make an informed decision about what you buy. We help you to discover the insurance protection that meets your needs, and then our unique reverse auction helps you get it for the best possible price.
Over the coming months we’ll be talking a lot more about this - it is something that we feel passionately about!
Graeme @ honcho