Auto insurance shoppers – what's their motivation?

Auto insurance shoppers – what’s their motivation? | Insurance Business America

Motor & Fleet

Auto insurance shoppers – what’s their motivation?

New report points to key considerations for motorists

Motor & Fleet

By
Terry Gangcuangco

A new report by J.D. Power Insurance Intelligence, produced in collaboration with TransUnion, has revealed consumers’ reasons for shopping around for auto insurance.

In its latest loyalty indicator and shopping trends report, J.D. Power noted: “As the current hard market cycle began, the leading reason for shopping auto insurance cited by consumers was they were ‘just browsing rates’. This indicates a ‘passive’ shopping experience and is consistent with results prior to the onset of the hard market.

“Over the next eight quarters, the share of consumers citing this as their primary reason for shopping dropped from 24.8% to 17.1%. At the same time, the percentage of shoppers saying ‘my rate was too high’ increased from 16.9% to 21.3% and those saying ‘my rate recently increased (not claim-related)’ increased from 7.9% to 14.6%, almost doubling.

“These reasons for shopping are indicative of a more ‘active’ shopper, seeking to switch insurers, rather than passively price checking. The recent or planned purchase of a new vehicle remains a strong trigger to shop for insurance, and almost 8% of consumers say they shop due to receiving a renewal notice.”

Reason for shopping auto insurance

Q1 2024

Q1 2022

My rate was too high

21.3%

16.9%

Just browsing rates

17.1%

24.8%

My rate recently increased (not claim-related)

14.6%

7.9%

I bought / I am planning to buy a new vehicle

12.6%

13.6%

I received a renewal notice

7.7%

8.3%

The insurance customer intelligence and customer experience advisory company went on to say: “As rate activity continues through 2024, the industry should expect to see continual growth in the share of consumers citing price reasons as their primary trigger to shop and should therefore expect to see more of these price-sensitive shoppers quoting them as a result.”

What do you think about this story? Share your thoughts in the comments below.