The new report from J.D. Power Insurance Intelligence and TransUnion highlights that auto insurance shoppers are primarily motivated by changes in price and rate increases. This shift from passive shopping (just browsing rates) to active shopping (due to high rates or recent rate increases) reflects consumers' sensitivity to price changes in the current market.
Key findings include:
- High rates: The primary reason for shopping around is that the current rate is too high.
- Recent rate increases: Consumers are prompted to shop around when they experience recent rate increases, even if they are not claim-related.
- Renewal notices: Receiving a renewal notice can also trigger shopping around for insurance.
- New vehicle purchases: Buying or planning to buy a new vehicle remains a strong trigger to shop for insurance.
As a result, insurers may need to focus on offering competitive pricing and addressing rate concerns to attract and retain customers. The report suggests that the trend of price-sensitive shopping is likely to continue through 2024, emphasizing the importance of price as a key factor in customer decision-making for auto insurance.
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