AMI Insurance is looking to win over the young'uns with a new campaign challenging the stereotype that younger drivers are reckless behind the wheel.
Featuring a young, wild driver listening to 'S8tan FM', the spot by Colenso BBDO aims to illustrate that insurance companies usually presume that all young drivers play loud music, text, speed and eat while driving.
AMI’s marketing and customer communications general manager Merran Anderson says AMI “believes most people drive normally until proven otherwise”.
“We are assuming that not everybody is driving badly, [and that] it's a misconception.”
While Anderson says young drivers have a history of higher claim rates, AMI no longer considers them risky to insure because the accident rate among young drivers has reduced over time.
But this campaign isn't only about breaking down stereotypes. Anderson says it's also about giving young drivers a foot in the door when it comes to getting insurance.
“It’s very hard for them to understand what they need to do to get insurance and premiums have been really unaffordable for them. Often the average value of the car means that if you are paying $1,200 or $1,300 dollars for an insurance policy when the car is worth $2000 then it’s just not viable which is a real shame.”
AMI aims to rectify this by offering young drivers an up to 50 percent off no claims discount upfront. However, if they do make a claim and are at fault, they will go through the normal process.
The campaign has been running since mid December, and Anderson says it has resulted in more business with young people than before.
Targeting young drivers may also see long-term gains for AMI, in that changing insurance companies—much like switching telcos, banks or internet service providers—is often seen as onerous and consumers tend to stick with the provider they have.
“We would hope so, but every company is judged on how it treats its customers and we don’t take it for granted that people chose to stay with us,” Anderson says.
The campaign is currently on TV, radio and online but Anderson says they will be expanding it as students go back to university.
“Because it is really resonating with the market we will add more service offerings and more communications around it.”