Positive Growth In Auto Insurance Industry Leads To New Emerging Trends Among Consumers

The auto insurance market has continued to evolve in recent years, shifting from “traditional” advertising strategies to significant investments in digital advertising. As the industry continues to expand its digital footprint, new reports predict the auto insurance industry will invest 72% of its advertising budget in digital by 2024. Digital Media Solutions recently analyzed its proprietary auto insurance online shopping data in order to spotlight some of the latest consumer trends within the auto insurance industry. The 2020 Auto Insurance & Emerging Consumers Trends infographic reports data from nearly 8 million consumer auto insurance inquiries submitted on DMS owned-and-operated websites, Jan-Sept 2019 (Q1-Q3 2019) compared to Jan-Sept 2020 (Q1-Q3 2020).  

Shifts In Auto Insurance Shopping Vary Across Demographics

Females were the dominant share of auto insurance seekers, accounting for 57.9% of online insurance quote submissions during the first three quarters of 2020.  

While prospective consumers between the ages of 25 and 54 made up the majority of consumers seeking auto insurance from price comparison websites, the share of seniors seeking auto insurance online jumped from 10.5% for the first three quarters of 2019 to 22.7% for the same period this year.

As a result of the ongoing pandemic and subsequent social distancing behaviors, in 2020 the senior demographic became more comfortable shopping online, including comparing auto insurance rates. According to recent research from Mintel, 43% of seniors have increased the amount of time they spend shopping online since the onset of the global pandemic. Comparatively, in May 2019, just 16% of consumers ages 65 and older shared they shopped online “at least once a week.”

Increase In Non-Homeowner Interest Opens The Door For New Bundling Opportunities

An increase in auto insurance interest among non-homeowners has also emerged, according to the 2020 Auto Insurance & Emerging Consumers Trends infographic, representing a possible opportunity for insurers to focus on promotions bundling renters’ insurance with auto insurance. During the first three quarters of 2020, the share of non-homeowners seeking auto insurance grew from 54.4% the prior year to 63.3%. 

This upward trajectory of non-homeowner auto insurance interest coincides with the steady growth in the number of renters occupying housing units across the U.S. According to data from Statista, the number of U.S. renters has consistently grown since 2014, reaching nearly 43 million in 2019.

Changes In Desired Auto Insurance Coverage Type Emerge As Americans Drive Less & Stay Indoors More

Requests for standard automotive insurance coverage were the most popular types of online auto insurance inquiries during the first three quarters of 2020, accounting for 39.7% of all inquiries. The share of liability-only coverage inquiries, however, experienced a noticeable rise in interest, increasing from a share of 17.9% during the first three quarters of 2019 to 27.5% a year later. This heightened interest in liability-only coverage is likely an effect of the ongoing pandemic, as consumers are continuing to drive less, spend more time at home and seek out additional cost cutting options amidst financial uncertainty.

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