The banks do it, the train companies do it, not to mention many other smaller organisations who see students as the future financial back bone of the UK do it! Do what you may ask? Offer a discount to students from our breakdown cover service providers is the answer.
Of course breakdown cover is an insurance policy and should be treat as such but unlike car insurance, premiums are calculated less on the risk factor and more on the number of memberships. This is proven every year at specific times when all car breakdown cover service providers reduce their premiums to compete with each other each of them working towards a target number of new memberships. Has any breakdown cover service provider charged you more because the car you drive has a reputation of being unreliable, or whether is has been serviced recently? The answer is no! It is a numbers game.
The campaign here, is then is a double whammy, one that gets thebreakdown cover membership numbers up for the relative organisations but also one that offers cheaper packages to students, who would probably not consider this as a purchase because many just can't afford it.
Many students attend colleges or universities away from home, drive older cars or motorcycles and transport becomes an essential part of their life. Cheaper policies would encourage students to be protected should they need assistance and take away the worry of unforeseen garage or recovery charges. These service providers are unlikely to treat a student any different from anyone in the cost to repair market.
Well first of all it is very likely the policies taken out will be be from customers who would not have considered breakdown cover at the normal full premium charge, so these policies would be a bonus to existing numbers. Secondly many customers are derived from web sites such as this and other well known shopping sites on the internet. We would normally receive commission from such sales, but if student policies were exempt from commission, then the service providers could reduce their premiums by at least that much. Web sites like ourselvest would not lose out as again, this is business we would not have received anyway.
First of all they will be increasing numbers, did offering 10% on certain days as DIY stores make a difference? Yes it did, a big difference! Secondly if they are not paying anyone any commission on such sales, they can offer that saving back to the customer. Thirdly they have the potential of gaining a customer for life, well after this person has passed their exams, earning good money and is in a good position to pay the normal premium rates as a satisfied customer.
I Am A Student What Can I do Next?Follow the link to our comments page and let the the top car breakdown cover service providers know how much you think this is a good idea. We will make sure they know about the campaign once we have sufficient members to justify the argument. We already know certain people high up read our log here anyway.
Please post your comments here.