Following steady gains from 2009 to 2012, the auto insurance market has reached a plateau as consumers are curbing their insurance shopping, according to the new TransUnion Auto Insurance Shopping Index.
“This tells us that despite the fact internet usage continues to rise, consumers are not fundamentally changing how they shop for auto insurance,” says Mark McElroy, executive vice president of TransUnion’s insurance business unit. “Attracting new consumers in a very competitive insurance market can be difficult, and our results emphasize the need for continued innovation to attract the right consumers.”
The industry saw growth ranging from 5% to 8% from 2009 through 2012, but there was no change from 2012 through 2014 with figures hovering around 16.8%. However, some states in the Southeast — such as Texas (+13%), Mississippi (+12%), Alabama (+11%) and Georgia (+10%) — experienced strong growth when it came to shopping for auto insurance. The largest declines occurred in Florida (-14%), Arizona (-12%) and Michigan (-11%).
The time when consumers shop for insurance tends to center around life events such as moving. Shopping rates increased 200% in the month before a move, were 130% higher the month of the move and were still 60% higher in the month following an insured’s move. Individuals with higher insurance scores also seem to shop earlier, while those with lower scores tended to shop later.
The study also found that individuals who have historically shopped for insurance continue to do so (up to triple the average shopping rate), as well as those who have a car loan (90%) and individuals with a mortgage (39%).
Consumers sought an average of two quotes when seeking to purchase insurance.
Jun 03, 2015 | By Patricia L. Harman, PropertyCasualty360.com