Insurance shopping slows in Q2 – report
“We’re still seeing interest in relocating to sunnier environments, which has led to increased homeowners insurance shopping in states such as Florida and Texas – which, ironically, are states that are more prone to extreme weather events and more expensive insurance,” said Michelle Jackson, senior director of personal property and casualty insurance at TransUnion. “However, consumers in the housing market are increasingly facing headwinds from rising mortgage interest rates and housing costs, which has tempered the rate of purchases and refis, and consequently, insurance shopping.”
Auto insurance shopping fell 3% overall in the second quarter compared to Q2 2021, TranUnion found. The drop was driven primarily by a sharp decrease in shopping by higher-risk consumers. In that segment, shopping was down 11% from Q2 2021. When comparing consumers across all credit tiers, TransUnion found that consumers with high credit scores continued to increase their auto insurance shopping.
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Renters’ insurance shopping dropped by 10% in the second quarter. While shopping was down across all age groups, shopping among baby boomers and silent generation renters dropped 16% from Q2 2021.
Shopping in the second quarter among Gen-Z renters fell 12% from Q2 2021. This could be due to an overall rise in rents; the median monthly rent price rose 17% – from $1,365 to $1,599 – between Q1 2021 and Q1 2022. Rising rents typically convince tenants to stay where they are rather than look for a new apartment, TransUnion said.
