Car insurance news

Pay as you go insurance illustrates insurer/dealer divide

The past twelve months have seen rapid growth in the use of GPS and the internet within the motoring industry; twin technologies which have been vital to the provision of pay as you go insurance.

But where insurers were among the first to jump on the technology bandwagon with products like GPS car insurance, another sector of the motoring trade has been slow to realise the potential offered by such high-tech devices.

The modern smartphone, for instance, takes full advantage – offering sat nav and data roaming facilities among a raft of other advanced features – but to date, less than ten percent of car dealerships have a website that works correctly with these devices, according to a recent survey by web management firm GForces.

It's a situation which GForces claims is costing dealers dearly, and turning motoring consumers onto more internet-oriented services like eBay Motors.

"People are increasingly using their mobiles to perform extensive research before making a purchase," said a GForces spokesman.

"To successfully harness the opportunity, dealers must understand how mobile technology is being used and adapt their online content to reflect the change."

The current growth surge in pay as you go insurance is just one of a number of ways UK motoring is changing in the 21st Century. Traditional car dealerships will have a fight on their hands attracting custom as more of the trade in vehicles moves online – and with missteps like the one highlighted by GForces, it's hard to see a rosy future on the forecourt.



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