Auto Insurance Shopping Increased 19% Year over Year in Q3 2024

CHICAGO, Nov. 13, 2024 (GLOBE NEWSWIRE) -- The third quarter of 2024 saw a big spike in shopping for both auto and property insurance, according to a report by TransUnion (NYSE: TRU). Auto insurance was up 19%, while property insurance shopping rose 16%, compared to the same time in 2023.

Auto insurance shopping increased across generations, though, not equally. Baby Boomers shopped the most by far, at 34%. Younger generations followed, with Gen Z (23%), Gen X (18%) and Millennials (8%) also looking for lower rates. Property insurance shopping was up among homeowners and renters alike.

These and other important findings are included in the , which provides insights and guidance to address anticipated trends in the new year.

“It’s important to note that consumers are also switching at significant rates,” said Patrick Foy, senior director of strategic planning for TransUnion’s Insurance business. “This should serve as a reminder to insurers that marketing and digital experiences matter for acquisition.”

The report found 38% of consumers who shopped for insurance in the past six months ended up switching carriers. It also notes that those who do not find better deals will often adjust their current policy by raising deductibles or opting into a telematics program to lower their premiums.

Insurers lean heavily on online marketing

Over the past two years, policy premiums have caught up with and recently exceed loss costs in the auto market. Predictably, insurers are also beginning to reinvest in marketing; however, not across all channels.

Comperemedia’s Q2 Omnichannel Marketing Review found national TV spending by property and casualty insurers dropped 15%, while online display skyrocketed with a 346% increase. Similarly, spending on social media rose 81% and online video advertising 55%.

“The focus on marketing through digital channels is encouraging, but it has to be optimized with a robust identity-based approach,” said Foy. “It is critical that insurers partner with a trusted solution provider who can ensure that their ads consistently target the right audiences and measure impact across channels.”

A generational shift for independent living

With prices in the housing market outpacing inflation, consumers across generations find themselves cohabitating in greater numbers, compared to just 15 years ago. When looking back to 2009, 34% of households with adult-age Millennials were composed of either a single individual living independently or with one or more people of the same generation, while 66% comprised an adult-aged Millennial cohabitating with someone in an older generation, such as a parent or grandparent.

By comparison, today only 22% of households with adult-age Gen Z consumers are composed of either a single individual living alone or with one or more people in the same generation, while 78% comprise a Gen Z adult living with someone from an older generation. The findings have significant implications for insurers who take on added risks with more people living in a household.

Insurers who understand the generational makeup of a household can better calculate the associated behavioral risks that come with its occupants. Here, again, occupant and identity-based solutions can help carriers match individuals and devices to locations, providing crucial insights that guide consumer acquisition and risk-based pricing.

For more information about TransUnion’s , click here.

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About TransUnion’s Insurance Personal Lines Trends and Perspectives Report

This quarterly publication examines trends in the personal lines insurance industry, including shopping, migration, violation, credit-based insurance stability and more. The Trends and Perspectives Report research is based almost entirely on TransUnion’s extensive internal data and analyses. It includes information on insurance shopping transactions from January 2023 to June 2024. However, the report excludes shopping data from insurance customers in California, Hawaii (auto), Massachusetts (auto), and Maryland (property), where credit-based insurance scoring information is not used for insurance rating or underwriting.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.