SOURCE: TransUnion

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June 02, 2015 06:00 ET

TransUnion Finds Auto Insurance Shopping has Plateaued

CHICAGO, IL--(Marketwired - June 02, 2015) - Consumers continued to curb their insurance shopping in the last year, according to the new TransUnion Auto Insurance Shopping Index. The TransUnion report found shopping rates for auto insurance have remained nearly the same on a year-over-year basis between 2012, 2013 and 2014.

Approximately 16.8% of credit active consumers in the U.S. shopped for auto insurance in 2014, matching the overall shopping rate for auto insurance in 2013 of 16.8%. The shopping rate was 16.9% at the end of 2012.

TransUnion's latest report also found that the average number of quotes received per insurance shopping consumer decreased from 2.3 in 2013 to 2.2 in 2014.

"After three years of increased insurance shopping, our data show that we have plateaued with no significant changes in shopping patterns since 2012," said Mark McElroy, executive vice president of TransUnion's insurance business unit. "This tells us that despite the fact internet usage continues to rise, consumers are not fundamentally changing how they shop for auto insurance. Attracting new consumers in a very competitive insurance market can be difficult, and our results emphasize the need for continued innovation to attract the right consumers."

Percent of Credit Population Shopping for Auto Insurance

           
2009  2010  2011  2012  2013  2014
14.4%  15.5%  16.1%  16.9%  16.8%  16.8%

Though national trends in shopping are flat, certain regional and segment level differences appear. Many states in the Southeast and South such as Texas (+13%), Mississippi (+12%), Alabama (+11%) and Georgia (+10%) experienced increases in shopping rates from 2012 to 2014. The largest declines of note from 2012 to 2014 took place in Florida (-14%), Arizona (-12%) and Michigan (-11%).

Other findings of TransUnion's Auto Insurance Shopping Index include:

  • Life events continue to be a primary driver of insurance shopping as auto insurance shopping rates were more than 100% higher the month of a consumer's address change
  • Segmentation of consumers provides further insights into shopping rates:
    • Consumers who have shopped historically continue to shop more actively for auto insurance (up to triple the average shopping rate)
    • Particular segments tend to shop more on average for auto insurance:
 
Percent Increase in Auto Insurance Shopping Based on Unique Characteristic
Has auto loan  90%
Has mortgage  39%
Modestly low insurance score  27%
Males  8%

The TransUnion Auto Insurance Shopping Index information is being used to support insurance carriers related to reporting, triggers, segmentation and lifetime value solutions. Please contact John Ittner (jittner@transunion.com) with questions about these services.

About the TransUnion Auto Insurance Shopping Index
The TransUnion Auto Insurance Shopping Index is derived from TransUnion's extensive database of credit data, which includes information on more than 450 million auto insurance shopping transactions from 2009 to Dec 2014. The Index focuses on the credit population, highlighting TransUnion's unique data. It also explores for a subset of the full data shopping rates for insurance policy holders. The Index excludes data from auto insurance customers in California and Massachusetts, where credit-based insurance scoring information is not used for auto insurance rating or underwriting. For more information on the TransUnion Auto Insurance Shopping Index, please visit: http://www.transunioninsights.com/studies/autoshopping/

About TransUnion
Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.

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