Buying auto insurance has slowed this year, but many Americans continue to look for new insurance policies to save money, rather than being in demand for a new car purchase, according to new reports.
Auto insurance retail 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 collaboration with TransUnion. And buying auto insurance was down 3% a year in the second quarter of 2022, according to the Personal Insurance Trends and Outlook by TransUnion.
“While purchasing auto insurance has declined overall, the percentage of buyers who are looking to purchase new auto insurance but are not also looking to purchase a vehicle has increased,” the TransUnion report said. “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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Buying auto insurance will slow in 2022
Auto insurance shopping is tends downwards due to factors such as high car prices and low inventory rising gas prices and interest rates, according to the JD Power and TransUnion report.
But even as more consumers look to lower their insurance premiums, an 11% drop in the number of new auto insurance policies by higher-risk consumers has significantly reduced overall purchases, according to TransUnion’s report.
“The lack of new auto purchases has stifled general auto insurance shopping,” said Michelle Jackson, senior director of personal property and casualty insurance for TransUnion’s insurance company. “Even with the influx of consumers buying their auto insurance as premiums rise from industry-wide rate hikes, this can’t overcome the depressed retail rates we’re seeing from consumers not buying new cars, creating a retail event.”
If you want to save money on your car insurance premium, you can visit Credible to compare quotes from multiple insurance companies and find the best option for you without impacting your credit score.
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Retail rates for homeowners insurance vary by region
According to JD Power and TransUnion’s research, buying homeowners insurance was more resilient than buying auto insurance in the second quarter of 2022, with an annual increase of 4%.
The slight increase in homeowner insurance purchases was mainly driven by an increase in the South. Buying homeowners insurance in the region was up 12% year over year in the second quarter.
“We’re still seeing interest in moving to sunnier environments, which has led to more insurance for homeowners in states like Florida and Texas, which are ironically states more prone to weather extremes and more expensive insurance,” Jackson said. in a press release.
If you want to save on your homeowner’s insurance, you may want to compare different insurance companies to find the company that’s best for you. Contact Credible to speak to an insurance expert to find the best homeowners insurance quote for you.
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Inflation continues to affect the home and auto insurance industries
Nearly all Americans, or 95%, say inflation is a concern, and 38% say they are extremely concerned, according to the latest Consumer Pulse Survey by TransUnion.
Experts expect inflation to remain high According to the latest forecast from the Mortgage Bankers Association (MBA), the Fed may miss its 2% inflation target until then. The Federal Reserve has recently attempted to reduce inflation by raising interest rates, which could push auto and home insurance premiums higher in the coming months.
If you’re looking for ways to keep your insurance costs low, you can compare quotes from different companies. Visit Credible to look at different quotes and find one that suits you.
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