Recent surveys have shown the British love of motorhomes has grown enormously. With UK motorhome registrations increasing by 2016 we can certainly see how this industry is now reportedly worth £6 billion. With an estimated 1 million leisure vehicles owned we know the market is a significant opportunity for brokers and insurers.
Leisure vehicle insurance has traditionally been considered difficult to place and therefore brokers have tended not to seek out this type of risk and on many occasions even turned it away. The rise of aggregators and purchasing insurance online has seen even the niche markets available more readily. In these changing times brokers are always looking for ways to compete against the major players and show the value of using a broker. There are of course the obvious benefits including preferential rates and time saving however one that is often over looked is the importance of knowledge within niche. Certainly within the leisure vehicle market never has it been truer that understanding your audience can provide an edge to those brokers who take the time to learn the market.
With an average of 90% of leisure vehicles owners being happy with their vehicle and over half intending to buy a new vehicle in the near future it is evident that the purchase affects quality of life. Leisure vehicles owners are widely known to consider their vehicles their pride and joy and take it’s care very seriously. It can be easier to understand this market than many would think. So we have some top tips to help brokers.
1. People feel differently about their leisure vehicle than their car. A car is very much a mode of transport to most, whereas a motorhome, campervan or caravan is like a home away from home. It gives comfort and security and should be approached with the same level of care as someone’s home.
2. Know their potential interests. Most people use motorhomes as a way to experience new things, this may be traveling across Europe for 6 months or driving down to the Jurassic Coast for weekends. Caravan owners may be more inclined to be regulars at a specific site while still having the freedom to change if they wish to.
3. Know their concerns. Motorhome owners will be worried about accidents and theft. Caravan owners may be more concerned with accidental damage and loss of use. Both will need good gas and explosion cover.
If something matters to you it is only natural you will want to protect it with someone you trust. These 3 points will help you as a broker understand leisure vehicle customers and therefore go a long way to helping secure their business. Even 1 or 2 cases a year can add to profit margins and help keep existing clients by meeting all their insurance needs.