Auto Insurance Shopping: How Many People Are Doing It?

With auto insurance costs spiking, it's no surprise that a record number of drivers are shopping around for the best rates. In fact, according to a J.D. Power survey, drivers shopped around at a rate of 13.3% in the second quarter of 2024—the highest it has been in the four years that the consumer data company has tracked the measure. Auto insurance rates have been rising since May 2022, and as inflation continues to squeeze budgets, many are looking for cheaper options. This is especially true as the cost of auto repairs has increased by 6.7% compared to the previous year and by 43% compared to 2020.

Auto insurance rates have increased by 63.8% between 2014 and 2023

While some consumers may be hesitant to switch insurance providers, it's important to recognize that staying with the same provider may not always be the best option. By shopping around and comparing quotes from multiple providers, consumers can often find more affordable coverage that better meets their needs. This is especially true if their rates have increased, they've moved to a new area, or they've experienced a personal or financial shift.

Additionally, insurance companies typically offer discounts for bundling multiple policies, such as home and auto insurance. However, it's important to periodically shop around even after bundling policies to ensure that you're still getting the best rate. Consolidating bills and personal information with one company can be convenient, but it may also discourage consumers from shopping around and finding a better deal when it's time to renew their policy.

When shopping for auto insurance, it's essential to consider your budgetary and coverage needs, as well as your priorities. Devote some time to evaluating your current policy and whether it still aligns with your requirements. If your rates have increased, it may be a good idea to compare quotes from different providers to find a more affordable option. However, be sure to choose the same coverage limits to ensure you're getting a true price comparison.

While there is no "best time" to get car insurance in terms of annual sales or seasonal offers, it's generally recommended to shop around at least once a year, usually at the time of your policy renewal. However, you can switch companies or purchase a new policy at any time. Some situations that may prompt you to shop around include increasing insurance rates, moving to a new state or ZIP code, insuring a new family member, purchasing a new vehicle, or experiencing personal or financial changes.

In conclusion, with auto insurance rates surging by 63.8% between 2014 and 2023, it's crucial for consumers to be proactive in seeking more affordable options. By shopping around, comparing quotes, and considering their coverage needs and priorities, drivers can make informed decisions about their auto insurance and potentially save money.

76% of people who shopped around for insurance saved money

Shopping for insurance can be a tedious task, but it is worth the effort. According to a ValuePenguin survey, 76% of people who shopped around for insurance saved money. This means that nearly three-quarters of those who took the time to compare quotes and policies found more affordable options. The survey also revealed that 82% of Americans believe that comparing multiple insurance quotes takes two hours or less, making it a relatively quick and easy process.

Among those who shopped around, 66% spent between 30 minutes to two hours, while 16% spent less than 30 minutes. Interestingly, 30% of those who compared insurance rates reported lifetime savings of $500 or more. When broken down, 44% saved between $100 and $499, and 16% saved between $500 and $999.

The survey also highlighted that many consumers don't shop around for insurance due to brand loyalty. About 43% of those who haven't compared quotes are satisfied with their current provider or policy. However, it is important to note that insurance rates and benefits can vary across providers, and shopping around can help identify more favourable options.

When it comes to the type of insurance, auto insurance tops the list for consumers willing to compare prices, with 43% of respondents expressing a preference for shopping around. This is followed by health insurance (14%), homeowners or renters insurance (14%), dental insurance (3%), and travel insurance (2%).

Additionally, the survey found that age plays a role in the likelihood of bundling insurance policies. Baby boomers (ages 56 to 75) are nearly twice as likely as Generation Z (ages 18 to 24) to use the same insurance company for multiple policies. Bundling policies can be a convenient way to save money, but it is important to periodically shop around to ensure you're getting the best rates.

82% of Americans say comparing multiple insurance quotes takes 2 hours or less

Comparing insurance quotes can be a time-consuming and tedious task. However, according to a ValuePenguin survey, 82% of Americans say that it takes 2 hours or less to compare multiple insurance quotes. This indicates that a significant majority of people find the process relatively quick and manageable.

The survey also revealed that nearly three-quarters of Americans have shopped around for insurance, and many of them saved money by doing so. However, there is still a portion of Americans who have never compared multiple insurance quotes, which could be costing them financially. By not shopping around, they may be missing out on potential savings and the opportunity to find the best rates and coverage for their needs.

The time spent on comparing insurance quotes varies, with 66% of consumers stating it takes between 30 minutes to 2 hours, while 16% say it takes less than 30 minutes. Additionally, age plays a role in the willingness to shop around, with older consumers favoring bundling insurance policies from the same provider.

When it comes to the insurance purchasing journey, most consumers start by searching and comparing providers online. According to LSA, 69% of insurance consumers ran a search before scheduling an appointment, and over 50% of these searches are performed on mobile devices. This makes it easier for shoppers to call an agent and discuss their options.

While insurance keywords are among the most expensive in search engine ads, with some costing $50 or more per click, insurance marketers are investing heavily in digital advertising to acquire customers. The US insurance industry is projected to spend over $15 billion on digital ad spend in 2024.

Despite the availability of online options, many insurance consumers still prefer to speak to a live agent to make a purchase. According to J.D. Power, 74% of consumers research insurance purchases online, but only 25% end up buying online. This highlights the importance of a seamless and personalized phone call experience in converting potential customers.

In conclusion, while comparing multiple insurance quotes may seem like a daunting task, the majority of Americans find it to be a relatively quick process, taking 2 hours or less. By shopping around and comparing quotes, consumers can make informed decisions and potentially save money on their insurance policies.

69% of insurance consumers ran a search before scheduling an appointment

Shopping for insurance is a highly personal process. It involves many considerations, such as the amount of coverage desired, whether family members will be added to the plan, and whether multiple types of insurance will be bundled together.

A survey by LSA found that 69% of insurance consumers ran a search before scheduling an appointment. This indicates that, for a significant number of insurance shoppers, searching online is the first step in assessing their options.

The insurance consumer journey often begins with a search, and mobile devices play a crucial role in this process. According to Blue Corona, over 50% of insurance searches are performed on smartphones, making it easier than ever for consumers to call an agent. This mobile-first approach is further emphasised by the growth of mobile queries containing "insurance near me", which have increased by over 100% in the past two years, as per Google.

The LSA survey also revealed that 68% of insurance consumers did not have a specific company in mind when they started their search, presenting a valuable opportunity for insurance providers to target these undecided consumers with effective search ads.

While the insurance consumer journey often starts with an online search, it's worth noting that most insurance consumers prefer to speak to a live agent to finalise their purchase. This is particularly evident in the complex world of insurance, where consumers seek personalised advice and tailored plans.

The insurance industry is facing a shift towards a customer-centric approach, focusing on delivering seamless omnichannel experiences. This includes investing in user-friendly interfaces, chatbots, call centre monitoring, and mobile apps to enhance customer engagement and retention.

In conclusion, the insurance shopping journey is a dynamic process that leverages both online and offline channels. With the ever-increasing popularity of mobile searches and the desire for personalised experiences, insurance marketers have a unique opportunity to capture a significant portion of undecided consumers through strategic search ads and seamless call centre experiences.

78% of insurance consumers call a business after running a search

The majority of insurance consumers (78%) call a business after running a search. This is because insurance is a complex purchase, and consumers often need to speak to an agent to put together a plan. Searches are the first step for many insurance shoppers to assess their options, with 69% of insurance consumers running a search before scheduling an appointment.

The insurance consumer journey usually begins online, with over 50% of insurance searches performed on mobile devices. This makes calling an agent more seamless than ever before. Mobile queries containing "insurance near me" have grown by over 100% in the past two years, as insurance shoppers increasingly place local searches and research agents in their area.

Since insurance purchases are highly personal and involve many considerations, insurance consumers will typically make a phone call during their journey. These considerations include the amount of coverage desired, whether family members will be added to the plan, and whether multiple kinds of insurance will be bundled.

To increase phone conversions, insurance marketers are optimising their channels and capturing conversation intelligence data to improve the contact centre experience. This allows them to deliver a seamless call experience, which is critical for converting insurance shoppers into buyers.

The phone call is the preferred channel for insurance customers to convert, ranking higher than online and in-person options. Calls are also more convenient for customers and provide a more immediate return on investment for marketers.

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