Car insurance purchases have slowed this year, but many Americans are still looking for new insurance to save money, rather than the incentive to buy a new car, according to new reports.
The auto insurance purchase rate fell to 11.7% in the third quarter of 2022 from 11.8% in the previous quarter, according to the Quarterly Auto Insurance LIST report by JD Power in conjunction with TransUnion. And auto insurance purchases were down 3% annually in the second quarter of 2022, according to TransUnion’s Personal Insurance Trends and Outlook report.
“While car insurance purchases are down overall, the percentage of buyers looking for new car insurance, but not looking to buy a vehicle either, has increased,” the report said. TransUnion report. “In other words, a higher percentage of buyers do so because of price or some other factor unrelated to a change in the car they drive.”
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Auto insurance purchases slow in 2022
Auto insurance purchases are trending lower due to factors including high car prices and low inventory as well as rising gas prices and interest rates, according to the report from JD Power and TransUnion. .
But even as more consumers are looking to lower their insurance premiums, an 11% drop in purchases of new car insurance by high-risk consumers has significantly dampened overall purchases overall, the report said. of Trans Union.
“The lack of new vehicle purchases has suppressed auto insurance purchases overall,” said Michelle Jackson, senior manager of property and casualty insurance for TransUnion’s insurance business. “Even with the influx of consumers purchasing their auto insurance as premiums rise due to industry-wide rate increases, this cannot overcome the suppressed purchase rates we are seeing among consumers who do not buy new cars, thus creating a purchase event.”
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NEW CAR INVENTORIES UP AND PRICES DOWN, BUT NOT MUCH YET
Home insurance purchase prices vary by region
Home insurance purchases were more resilient than auto insurance purchases during the second quarter of 2022, growing 4% annually, according to the JD Power and TransUnion study.
The slight increase in home insurance purchases is mainly explained by an increase in the South. Home insurance purchases in the region were up 12% year over year in the second quarter.
“We are still seeing an interest in moving to sunnier environments, which has led to an increase in home insurance purchases in states such as Florida and Texas, which ironically are more weather-prone states. extremes and more expensive insurance,” Jackson said. in a Press release.
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Inflation continues to impact the home and auto insurance industry
Almost all Americans, 95%, say inflation is a concern, and 38% say they are extremely concerned, according to TransUnion’s latest Consumer Pulse Survey.
Experts expect inflation to remain high through 2024, saying the Fed may not hit its 2% inflation target before then, according to the latest forecast from the Mortgage Bankers Association (MBA) . The Federal Reserve has recently tried to reduce inflation by raising interest rates, which could lead to higher auto and home insurance premiums in the coming months.
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