During the fourth quarter of 2022, the number of motorists searching for new car insurance policies with cheaper rates reached its highest level ever, according to a new Quarterly Shopping List Report released by J.D. Power.
The number of new car insurance quotes given to consumers jumped by an astounding 12.1 percent in late 2022, with an increase of 4.1 percent of consumers presented with those quotes switching to a new policy.
However, these fiscally-minded motorists may find that they have fewer options when it comes to searching for new insurance policies, as some insurance providers have reduced their advertising spending and even closed less-profitable acquisition channels due to a fear of rising costs, according to the J.D. Power report.
As we see, consumers are out shopping more than the past, entering a market that is more difficult to navigate and finding carriers who are not as interested in winning their business,” the report says. “How this plays out in 2023 will be something we will watch throughout the year.”
Another option for individuals seeking to lower their insurance rates – as opposed to switching up providers – would be to accept a telematics device from their current company. These devices can link up with a motorist’s smartphone app and allow the company to monitor details about a customer’s driving habits, and potentially lead to lowered insurance rates, Michelle Jackson, TransUnion’s senior director of personal lines market strategy, said.
The value proposition of telematics is that consumers give up some sense of privacy or autonomy to provide insurers a demonstrably safe driving record in real-time,” she said. “If they’re not seeing that translated into lower rates or if their rates actually increase, some may not continue with the program.”
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® and The Published Reporter® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.