Insurance Shopping Likely to Remain Strong in 2024, Despite Seasonal Dip in Q4 2023

Personal and auto insurance shopping is likely to increase in 2024 due to several market factors, new research shows.

The observation in a new TransUnion report comes at a time when shopping for both insurance lines dropped at the end of 2023, mostly due to predictable seasonality as consumers focused on holiday gift buying and travel.

Increases in insurance shopping will partly be spurred on by changing mortgage rates, which are expected to decline in 2024. As a result, consumers are expected to enter the housing market and shop for insurance along with new homes, the report shows.

In addition, 17% of consumers plan to purchase or lease a new vehicle in 2024. That’s up from 11% the year prior, which also typically constitutes an insurance shopping event.

The report notes that insurers have made significant progress in closing the gap for rate adequacy, with some reporting near-target profitability. As a result, marketing efforts are likely to pick up in 2024. Consumers may be more likely to consider switching with increased ad exposure, according to the report.