Despite the challenges during the period, auto insurance shopping in the U.S. saw an increase in the third quarter of 2022, according to a new report from LexisNexis.
For the third quarter of 2022, U.S. auto insurance purchases were up 1.2% year over year, up from -2.0% in the second quarter of 2022. This is the first quarterly up-quarter growth since the second quarter of 2021. LexisNexis noted that this upward momentum occurred even though new vehicle sales remained low compared to annual pre-pandemic trends. New vehicle purchases also dropped significantly at the end of September due to Hurricane Ian.
It was noted that much of the auto insurance retail activity in the third quarter of 2022 was in states that have implemented rate increases (such as Florida, Georgia, Illinois, and Texas) in response to an increase in claims costs seen in the second half of 2021. began. .
Other key points from the report include:
- Insured losses from Hurricane Ian are currently estimated at more than $60 billion, with Florida retail volume down 40% the week Ian made landfall.
- Despite this, Florida experienced a 10% increase in car insurance purchase volume for most of August and September, including a 13% increase in the week before the storm.
- When Florida retail volumes fell the week Ian landed, retail volumes nationwide fell -6% the following week.
- Consumers are buying more carriers and those shopping will increasingly buy a new policy.
- The 25- to 55-year-old middle-aged demographic continued to shop at its highest clip in the third quarter, even as shopping growth accelerated across all age groups, with each group turning primarily to independent agents.
- LexisNexis made two noteworthy observations for the quarter:
- Consumers buy more carriers
- Those shoppers will increasingly buy a new policy
“It is highly likely that certain states will see continued shopping momentum, but we are also monitoring the lasting impact of Ian, possible interest rate hikes in many other states, and the potential for a recovery in new car sales in the coming months,” said LexisNexis. Risk Solutions vice president and general manager of auto and home insurance Adam Pichon. “All of these factors will play a critical role in shopping patterns as we exit 2022 and begin to look ahead to 2023.”
While auto insurance retail activity increased in the past quarter, the same cannot be said about how satisfied customers are with their policies.
Read more: Revealed – how will US auto insurance customer satisfaction fare in 2022?
Another report from JD Power last month polled US auto insurance customer satisfaction and found that satisfaction dropped seven points to 873 (on a 1,000-point scale) as of 2021, attributed to customers losing patience with lengthy claims processes.