Quarantined re-educated drivers: Instead of banning cars for a year, ban pay-for-pay

In response to the resulting decline in consumer loyalty, insurance companies are forced more than ever to compete on prices, with more flexible insurance packages and to respond to the changing priorities of insurance buyers.

Drivers are actively insured as mandatory

70 percent. – Even in the times of new technologies, a part of Lithuanian consumers has become accustomed to buying insurance services by phone, mail or physical insurance sales areas. However, the quarantine period “pushed” the entire industry to the Internet at the touch of a button, severely affecting insurance brokers that lagged behind in technological capacity.

“In the current era of uncertainty about the future, consumers focus on basic needs and seek lower prices online. In the insurance sector, compulsory liability insurance can be considered a basic need. In this segment of services, has been registered a 30 percent in the last months. growth “, says Rima Kazlauskaitė, the head of the Edrauda system.

According to the interlocutor, the structure and content of compulsory liability insurance are clearly defined by law, so the main criterion for choosing between the offers of different insurance companies is usually the price of the services. When searching for the best prices, consumers are used to comparing the offers of at least several insurers, as different companies financially treat and assess people’s risk depending on the age of the driver, the driving experience, the vehicle and other factors. .

Insurance – salary to salary

Compared to winter, the average price of a liability insurance policy was 5 euros lower in the second quarter. The specialist attributes the decrease in the price curve to seasonality: as the warm season accelerates, many insurance companies try to attract the attention of customers who sit in cars with promotions and special offers.

It is interesting that, unlike Latvia or Estonia, Lithuanians are used to buying liability insurance throughout the year, and only recently assessed that it is sometimes worth insuring for a shorter period of 3 or 6 months.

“During quarantine, the ability to pay for insurance every month, recently introduced on the market, became popular,” says R. Kazlauskaitė. “In general, when looking at insurance sales hours, we notice that people buy in the first weeks of the month, when they get paid and have something to pay, and at the end of each month, the numbers drop cyclically.”

We are lagging behind the Latvians

The massive migration of Internet driving insurance, caused by the quarantine in Lithuania, took place in neighboring countries much earlier. For example, in Latvia, online civil insurance has existed since 2008: already in 2014, online sales of compulsory insurance in Latvia accounted for 30%. of all transactions, and in the last five years their relative weight has increased by up to 70 percent.

The majority of sales in Latvia consist of insurance policies purchased using so-called insurance aggregators, which allow you to obtain and compare the rates of offers from different insurance companies in a single window.