When it comes to the process of shopping for auto insurance, consumer decisions are heavily influenced by a wide-ranging series of values, demographics and psychographics, with decision-making factors changing throughout an individual’s lifetime.
To better understand the motivational factors impacting auto insurance shopping, Digital Media Solutions recently published results of its DMS 2021 Auto Insurance Shopping Trends online survey. The findings reveal key motivations behind the decisions today’s consumers make during the key milestone stages related to auto insurance shopping.
Younger Generations Switch Auto Insurance Providers More Than Older Generations
According to the DMS 2021 Auto Insurance Shopping Trends online survey, younger consumers (ages 18-34) are more likely than older age groups to change auto insurance providers quickly. Nearly a quarter of the youngest auto insurance age group remains with their current providers for 1-3 years, compared to just 10% of respondents ages 35-64 and 13% of respondents 65+. Overall, however, approximately 67% of respondents have been with their current auto insurance provider for a period greater than five years.
Taryn Lomas, executive vice president of insurance at DMS, said, “Younger consumers often initiate their relationships with an auto insurance provider as a result of brand-loyalty inherited from their parents or family members. This group typically develops an interest in changing providers to save on insurance premiums as they become financially independent.”
Lomas noted that some of the most sought-after and valued services offered by auto insurance carriers include renewal and bundling discounts, accident forgiveness and smooth digital claims processes. According to Lomas, auto insurance providers should engage younger customers often during their second and third anniversaries, promoting discount programs and valued services to sustain loyalty.
Consumers Prioritize Savings & Service When Choosing Auto Insurance Providers
Auto insurance cost is the key driver for consumers seeking auto insurance providers, with 53% of respondents selecting price as the main reason they chose their current auto insurance providers. Enticing savings incentives, mileage-based plans, loyalty-based rewards and bundling offers can all cater to the desire for budget-friendly auto coverage. Accessibility, responsiveness, frictionless claim processes and digital services (like mobile apps) are all important for auto insurance shoppers. As a result, the perception of “better service” came in as the second most important reason for choosing an auto insurance provider, with 34% of respondents (primarily older audiences) prioritizing this factor. Encouraging top-tier customers to write reviews of their experiences can help promote the “better service” benefit, noted Lomas. Positive testimonials positioned on a provider's website and social media pages can be powerful consumer motivators and inspire high-intent consumers seeking new insurance options to take action.
Most People Search Online For Auto Insurance Policy Options
When asked which method they were most likely to use when researching auto insurance policy options, “online research and reviews” came in as the top overall response, especially for men. This transition to online shopping is widespread, and positive reviews encourage action. In fact, 88% of consumers say “reviews influence their online purchasing decisions,” according to testimonial application Boast. Additionally, BigCommerce – a leading ecommerce SaaS platform for merchants – revealed that “customers who interact with reviews are 58% more likely to buy.”
Not surprisingly, younger consumers are more likely than older consumers to start their auto insurance comparison shopping online. Likewise, consumers age 65+ are the most likely to reach out to insurance agents when price shopping.
More than half of consumers believe easy comparison shopping online for auto insurance is essential, with price and service comparisons both important. As online shopping becomes more popular across industries and as consumer demand for insurance coverage that aligns with their unique lifestyles grows, more and more consumers will complete their entire car insurance research and buying process online.
The DMS 2021 Auto Insurance Shopping Trends online survey reports data from more than 250 respondents aged 18+ across the U.S.
Excellent Customer Service Creates Auto Insurance Loyalty
More than half of respondents credited “excellent customer service” as the main reason to stay with their current auto insurance providers, according to the DMS 2021 Auto Insurance Shopping Trends online survey. Women are more influenced by quality service than men, with men valuing regular communication and updates from their insurance providers more than women.
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