Auto insurance shopping rates were up 12% year-over-year in the second quarter, and while vehicle sales played a role in the increase, the search for lower insurance premiums was the primary driver, according to TransUnion, which pointed out that the Consumer Price Index for motor vehicle insurance rose 17% year-over-year in June.
The findings are part of TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report, which includes trends in the auto and property insurance industries, as well as survey data about consumers’ behaviors and attitudes.
Despite historically high vehicle pricing and increased auto insurance premiums, J.D. Power's June U.S. automotive forecast estimated a 23% boost in new-vehicle sales year-over-year. Meanwhile, used-car sales dipped slightly as a result of improved new-vehicle inventory.
“There was a drop in shopping activity among riskier consumers in Q2 2022, partly due to insurer’s reduced marketing spend; however, we saw a rebound in activity from that segment in Q2 2023,” said Stothard Deal, vice president of strategic planning for TransUnion’s insurance business. “Lower risk consumers have been consistently shopping at higher rates for the past 12 months.”
Originally posted on F&I and Showroom