Report: U.S. Consumers Continue Switching Auto Insurance at Higher Rates
A report on the first quarter of 2024 shows a continued surge in new auto insurance policies, indicating that U.S. consumers are switching providers at higher rates.
LexisNexis issued its Insurance Demand Meter report this week. It advises carriers to focus on renewal and retention strategies for sustained growth.
The report’s findings include:
- U.S. consumer auto insurance shopping activity saw quarterly year-over-year growth of 2.9%, slowing slightly from last quarter’s 4.7% increase year-over-year.
- The quarterly year-over-year growth for new policies was up 8.7%.
- Quarterly year-over-year new policy growth increased for the seventh consecutive quarter, meaning consumers continue to switch carriers at an increasing rate when they shop.
- Going back to 2021, the consumers most likely to be retained by their existing insurance company – or those who have been loyal for 10-plus consecutive years – comprised less than 20% of the shopper pool. Through Q1 2024, this cohort has grown to 24% of total shoppers.
- More drivers are entering the market. In Q1 2024, the growth in new drivers largely offset the number of leavers. This bucks trends observed in 2022 and 2023, when a record number of consumers left the market in response to higher premiums.
- In Q1 2024, older shoppers (66-year-old and over) looked for insurance at the highest rate, with higher premiums helping incentivize those on fixed incomes to shop.
