Auto insurance

Consumers accept telematics option to lower car insurance premiums: TransUnion

Consumers are increasingly accepting telematics options to lower their auto insurance premiums, TransUnion said. (iStock)

As the cost of auto insurance rises and consumers look for ways to cut their monthly expenses, more drivers are turning to a safe driving discount option to help lower their premiums, data shows. recent.

A new report from TransUnion showed that the number of consumers who accepted a telematics device offer from their car insurance company jumped 33% since the end of 2021. Telematics programs use connected devices, smartphones or a mobile application from car manufacturer to monitor and report details about driving habits. In homes, similar telematics data options monitor fires, water leaks, and other hazard risks.

By using these devices, consumers can potentially lower their rates by demonstrating safe driving habits to their auto insurance provider.

“It’s clear that high levels of inflation are impacting consumers’ wallets, and many people are now considering new technologies that could help them save money,” said Michelle Jackson, senior business manager property and casualty insurance company from TransUnion. “In the insurance industry, more and more consumers are in favor of the idea of ​​using a telematics tool to improve driving safety while reducing costs. This change in sentiment could carry over to offers similar in the field of real estate.”

If you’re looking for ways to save on your auto insurance, comparing multiple insurance companies can help you find the best rate. You can visit Credible to find personalized car insurance quotes and choose the best option for you.

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Auto insurance prices are on the rise

As inflation has increased over the past year, the cost of car insurance has also increased. According to the TransUnion report, cumulative auto insurance prices have risen an average of 4% since last year, with some states posting increases of nearly 20% for some drivers.

“In response, consumers are looking for lower premiums, better coverage and better service from their insurer, a trend seen in auto, home and rental insurance,” the report said.

About 39% of drivers said they bought new car insurance in response to rising costs, and 21% of those who did buy ended up following through and switching car insurance providers.

If you’re looking to lower your auto insurance premiums, switching providers could help you save. When it comes to auto insurance, loyalty doesn’t always pay off as different providers offer different discounts. For example, some insurance policies may offer discounts to safe drivers through telematics options or by viewing your driving record, while others offer better discounts to young drivers. You can visit Credible to compare multiple providers at once and choose the one that suits you best.

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Home insurance searches have declined

According to TransUnion, as purchases of new auto insurance increased, consumers purchased less home insurance. Property insurance purchase rates jumped in 2021 but leveled off in 2022 as mortgage interest rates have risencooling housing demand.

Conversely, auto insurance buy rates were depressed in 2021 as supply chain shortages slowed the market, while demand for property insurance was high. Now, TransUnion said home and auto insurance are reaching a balance.

“It looks like the auto and property insurance sectors have found some balance this quarter, after a tumultuous 2021,” Jackson said. “Inflation is expected to continue through 2022, which will likely have the dual effect of driving down the price of consumers’ new homes and vehicles while motivating them to seek more affordable coverage.”

Consumers looking to find affordable home and auto insurance can contact Credible to speak with an insurance adjuster and get all their questions answered.

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