How often do auto insur- ance consumers desire to shop for a new policy? This is one of many questions
TransUnion seeks to answer with its Auto
Insurance Shopping Index.
Focused on the general credit population, the index draws upon information
from the agency’s extensive database.
TransUnion’s database contains information concerning more than 430 million
auto insurance shopping transactions
dating from 2009 to 2013, providing a
rich, unique data set. It also explores for
a subset of the full data shopping rates for
After analyzing this data, TransUnion
has concluded that consumers who shop
for insurance and receive a quote are 350
percent more likely to shop again in the
next year compared to policyholders who
What TransUnion Data Reveals
About Insurance Buying Behavior
By Christina Bramlet, PropertyCasualty360.com
did not receive a quote. The report authors also found that more than half— 55
percent—of policyholders who do shop
receive two or more quotes within an annual period.
So what is motivating consumers to
switch insurers, or at least look for greener pastures? Barring unsatisfactory claims
experiences, some experts theorize that
avid comparison shopping may be the result of robust marketing programs.
“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,” says
Mark McElroy, executive vice president
of TransUnion’s insurance business unit.
“Our proprietary data is able to track ac-
tual trends in new business auto insur-
ance since 2009, improving the industry’s
access to strategic information on auto
TransUnion notes that overall shop-
ping rates for auto insurance are down
about 4 percent in the 12 months ending
June 2013 relative to the full year of 2012.
Moreover, rates decreased about 7 per-
cent relative to a year earlier. While 15.1
percent of the credit-active population
shopped for new auto insurance policies
in the 12 months ending June 2013, this
represented a decline from 15. 7 percent
for the full 2012 year, and 16. 2 percent for
the 12 months ending June 2012.
The data also provides insight into the
characteristics of auto insurance shoppers, as well as potential group-specific
motivating factors. Among other characteristics, the information shows that
younger drivers tend to shop for auto insurance more frequently, and auto insurance shopping peaks at age 25 for both
men and women.
The agency also finds that younger
women—those between 25 and 40 years
old—are more active auto insurance shoppers than their male counterparts. However, that trend reverses at mid-life. After
age 40, the percentage of women who shop
for new policies wanes, while the shopping
rate among men remains relatively stable.
Movers and Shakers
While auto insurance shoppers tend to
be younger, those who are in the process
of, or have recently changed their place of
residence also tend to be heavy shoppers.
Compared to non-movers, consumers who
move residences are 200-percent more
likely to shop for auto insurance before
their move; 130-percent more likely during
the month of their move; and 60 percent
more likely one month after the move.
“In the competitive auto insurance
market, data and analytics can mean the
difference between winning and losing,
as a result of low retention and adverse
1 in 3 auto insurance customers
shop for new policies each year
Auto policyholders are more active consumers
than the general population. Compared to
14.9% of credit-seeking consumers, auto
customers shop at a rate of 30%
Auto insurance shopping declines during the holiday season
There is a seasonality to quoting: Auto Insurance shopping peaks in March
and is lowest during the months of November and December.
Consumers who shopped for
coverage once were 350% more likely
to shop again the following year.
Past behavior predicts future behavior.
For example, policyholders who shopped in
2010 were 350% more likely to do so in 2011.
Source: TransUnion LLC
All auto insuance
People who shopped
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