Auto insurance shopping surges as younger generations return to work

The rate of auto insurance shopping appeared to change significantly in the second quarter of 2021, according to a new report from consumer credit reporting agency TransUnion. Amid an economic recovery from COVID-19, younger consumers are returning to work, and shopping for such insurance grew 5% annually in Q2.

Comparatively, a 10% to 25% three-week average drop was seen in the first quarter of this year. The three-week moving average for auto insurance increased by 2.9% during the most recent week included in the report, July 4. 

"It’s a positive sign to see an increase in both property and auto insurance shopping," said Mark McElroy, executive vice president and head of TransUnion’s insurance business. "While property insurance shopping has been partly buoyed by a strong housing market and low interest rates, auto insurance shopping has clearly been slower to recover partly due to constrained inventories of new automobiles. More automobile insurance shopping may soon be on the horizon as we are seeing an increase in such activity by younger as well as higher-risk consumers."

Shopping around for auto insurance coverage is important, because companies will charge differently depending on options you want – including bodily injury, property damage, collision coverage and much more. If you are looking to purchase auto insurance coverage or want to know if you could get a better rate, visit Credible to compare multiple auto insurance coverage options at once and find insurance quotes for a policy with prices and discounts that best fit your needs. 

MANY AMERICANS LOSING CAR INSURANCE SAVINGS BY NOT SHOPPING AROUND, STUDY SHOWS

Millennials, Gen Z increase their auto insurance shopping

Many non-standard auto insurance policy customers were forced to go uninsured or underinsured in 2020 due to economic hardship, according to the report. As the U.S. economy improves – and tax rebates and stimulus checks have been distributed – many consumers are once again able to to afford insurance. 

TransUnion’s latest Personal Lines Insurance Shopping Report also found a resurgence in auto insurance shopping for higher-risk consumers, in addition to the millennial and Gen Z generations. Consumers at the highest risk (a TrueRisk score between 300 to 500) increased their three-week average shopping rate by 9.2%.

For those in the higher risk categories, it's critical to compare multiple insurance companies to ensure you are getting the best price available. Visit Credible to enter your information just once and get quotes from multiple insurance companies with the best rates for you. You can also find discounts available for different options like a bundle with homeowners insurance or accepting a higher deductible. 

SURVEY SAYS MOST AMERICANS OVERPAYING FOR CAR INSURANCE: HOW TO LOWER YOUR RATE NOW

The report found that millennials and Gen Z became more active shoppers in 2021, while older generations such as Boomers and the Silent generations were less active. This may be because many millennials and Gen Z saw high youth unemployment during the COVID-19 pandemic, which is now dropping as the economy recovers.

"Younger consumers who lost their jobs in 2020 may have subsequently left the auto insurance market altogether, but are now gradually returning as they take on new jobs and now have a need for coverage as their transportation requirements evolve," McElroy said. "Delayed tax refunds and stimulus, as well as the beginning of advanced payments on the new Child Tax Credit, will give more people the opportunity to shop for new cars and new auto insurance. Overall, the seasonal ebb and flow of auto shopping that the industry has come to expect may not apply over the next few years."

By comparing multiple car insurance companies, drivers can reduce their monthly insurance premiums as they ease back into the workforce. Visit Credible to get prequalified for a car insurance policy in minutes without affecting your credit score. Some carriers put more weight on the driving record, on teen drivers or other factors when determining prices, so drivers get the most affordable rates by shopping multiple companies. 

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.