Consumers who shop for insurance and receive a quote are 350 percent more likely to shop again in the next year than those who did not receive a quote, according to the “Auto Insurance Shopping Index,” from TransUnion. And, 55 percent of policyholders who shop receive two or more quotes per year.
Overall, fewer people are shopping for auto insurance, TransUnion said, declining 4 percent in the 12 months ended June 2013, compared to all of 2012, and 7 percent compared to 2011. In the 12 months ended June 2013, 15.1 percent of the credit-active population shopped for new auto insurance, compared to 15.7 percent for 2012 year and 16.2 percent for the 12 months ended June 2012, TransUnion said.
Younger people tend to shop for auto insurance more frequently, TransUnion said, and auto insurance shopping peaks at age 25 for both men and women. Women from age 25 to 40 are more active shoppers than men in that age cohort; older men are more active shoppers than younger men; older women shop less, TransUnion said.
People who are moving or have recently moved tend to be heavy shoppers, and are twice as likely as those who are not moving to shop, TransUnion said. And, those people are 130 percent more likely to shop during the month of their move and 60 percent more likely to shop in the month after the move.
TransUnion also found that the propensity to shop rates is persistent; those who have shopped in previous years are 350 percent more likely to shop in the current period, and 300 percent more likely to shop two years after their original shopping year. Drivers with lower credit-based insurance scores shop most frequently, TransUnion said. Those with the highest insurance scores are less likely than the general population to shop for new auto insurance.
Auto insurance shoppers on average request two quotes, and 45 percent of auto insurance shoppers request just one quote. The most active period for auto insurance shoppers is the spring, TransUnion said; December is the least active month.
“TransUnion’s auto insurance shopping data help insurers understand how their company is faring among insurance shoppers. Among other things, our data can tell insurance companies if their customers are shopping more than the general market, which customers are quoting most often and when they are likely to shop,” said Mark McElroy, EVP of TransUnion. “More than a billion dollars are spent each year on auto insurance advertising, most of which urges consumers to switch their policies to another carrier. Our proprietary data is able to track actual trends in new business auto insurance since 2009, improving the industry’s access to strategic information on auto insurance shopping.”
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