Online car insurer Progressive Direct (www.progressivedirect.com.au) has surveyed Australian drivers about shopping online and saving money. Some of our findings may surprise you…

Sydney, NSW -- (SBWire) -- 05/28/2010 -- More than half of Australian consumers would sooner sacrifice creature comforts than consider smarter ways to save bigger bucks, a new survey from online car insurer Progressive Direct (www.progressivedirect.com.au) reveals.

The survey of drivers around the country exposes some of the shopping habits of consumers and creative ways they stretch their household budgets.

For example, 55 per cent cut down on lifestyle comforts like electricity, heat and air conditioning while 53 per cent stick to cheaper brands like shops’ own brand labels.

Other findings include:

• 52 per cent use the internet when money gets tight;
• 36 per cent only buy things when they’re on sale;
• 40 per cent sacrifice rest and relaxation, cutting back on holidays, and;
• 7 per cent scrimp on soap and shampoo

“It seems we’re very resourceful when it comes to thinking up ways to save money,” said Simon Lindsay, head of Progressive Direct. “But our survey also suggests we sometimes only focus on the smaller ways to save while ignoring bigger opportunities.

“For example, our survey shows less than half of consumers (45 per cent) regularly consider the cost of their car insurance policy.

“And, while most consumers know that rates vary among car insurance companies (only 22 percent answered “True” when asked whether all insurance companies charge about the same amount for car insurance), most have no idea just how big the savings can actually be.”

More than three quarters of those surveyed (76 per cent) by Progressive Direct thought the average annual amount an adult couple could save on car insurance was $200 or less. But a study by CHOICE found the average difference between the maximum and minimum premium for an adult couple was actually $625.

“Shopping around for car insurance is a simple thing people can do to potentially save hundreds of dollars a year and doesn’t take too long to do,” Mr Lindsay said.

“Looking at it another way – consumers can actually use the savings they make on their car insurance to put towards that all-important holiday, or even splurge on an extra bottle of shampoo!”

Additional survey results are available upon request.

SIMON LINDSAY is available for comment.
Contact: Simon Mossman, Wilkinson Group, on 0414 472 585 or Pip McGrouther, Wilkinson Group, on 0422 041 050

About Progressive Direct
Progressive Direct (http://www.progressivedirect.com.au) is an online car insurer with Australian headquarters in Melbourne. Its account-style offering is designed for consumers who prefer to buy and manage their policies online in a simple and secure Internet environment backed by 24/7 support. Progressive Direct aims to make car insurance simple, including by making it possible for customers to insure up to five cars on a single policy, eliminating the hassle of having to quote, buy and manage separate policies for each car in their household.

Progressive Direct Insurance Company ABN: 28 140 389 528, AFSL: 342 902 is regulated by the Australian Prudential Regulatory Authority and is a wholly owned subsidiary of The Progressive Corporation (Progressive), a Fortune 500 company based in the United States. Progressive is one of the largest motor insurance specialists in the world, insuring over 10 million motor vehicles each year.

For more on Progressive, visit http://www.progressive.com.

DID YOU KNOW?
Online car insurer Progressive Direct (www.progressivedirect.com.au) has surveyed Australian drivers about shopping online and saving money. Some of our findings may surprise you…

I did it My Way
The main reason people shop online is because—as Frank Sinatra would say—they can do it their way.

When asked to pick the main reason they shop online, half of those surveyed (50%) said it’s because they can do it anytime, when it’s most convenient for them.

Other top reasons for online shopping are value and ease:
17% “I think I’ll get a better deal because there’s less overhead.”
14% “It’s easy.”

A small number (1%) said their main reason for shopping online is so they don’t have to talk to a sales person or be put on hold while buying something on the telephone.

Some said their main reason for shopping online is so they can buy things they can’t get in Australian shops.

Men are the real shop-a-holics
Nine out of 10 Australians shop online at least occasionally (only 11% say they never shop online). Close to half (45%) say they shop online at least once a month.

AND: men are more than twice as likely as women to shop online every day. (5% versus 2%)

Don’t forget to bring a book for the flight
When asked what they bought online in the past year, almost half of those surveyed (45%) said they’d bought airline tickets. Other top online buys:
36% Books
33% Consumer electronics
32% Clothing

A virtual test drive?
21% of people bought car insurance online within the last year, while 4% bought an actual car over the Internet. People in regional areas were six times more likely to buy a car online than those in metropolitan areas (7% versus 1%).

NSW drivers are 50% more likely to buy car insurance online than people in Queensland.

Percentage of people who bought car insurance online in the last year:
27% New South Wales
20% Victoria
19% Western Australia
18% Queensland

Does this computer screen make my bum look big?
Maybe it’s fear of the dressing room, but women are 77% more likely than men to buy clothes online (39% versus 22%).

Men, meanwhile, are twice as likely as women to buy consumer electronics online (50% versus 23%).

Roughing it
When asked what lifestyle changes they’ve made to save money, more than half of Australians (55%) say they use less water, electricity, heat and air conditioning.

Some (7%) even go so far as to cut back on soap and shampoo. But people in Queensland are about half as likely to cut back on soap and shampoo as people in NSW (5% versus 9%). And married people are about half as likely as singles (5% versus 10%) to cut back on soap and shampoo.

Staying home for the holidays
About 40% of those surveyed save money by going away on holiday less often.

What’s in a name?
53% of people buy cheaper brands, like shops’ own brand labels.

Cutting down on car use
Almost a third of drivers (30%) say they drive less to save money. 12% say they use public transport more.

Kick the habit for cash?
About a quarter of smokers (24%) say they quit smoking cigarettes to save money, while 37% cut back. But 39% say their smoking habits remain the same.

Drinking seems to be a harder habit to break. Only 5% of those who indulge in alcohol report giving up drinking altogether to save money. 39% have cut back on alcohol, while more than half (56%) haven’t changed the amount of alcohol they consume.

Among the states surveyed, Western Australians are the most likely to give up alcohol when money gets tight, and Victorian residents are the least.
Percentage of drinkers who gave up alcohol to save money:
8% Western Australia
7% Queensland
5% New South Wales
2% Victoria

Contact: Simon Mossman, Wilkinson Group, on 0414 472 585, or Pip McGrouther, Wilkinson Group, on 0422 041 050