Auto And Property Insurance Shopping Saw 20% Spikes in 4Q 2024, Report Shows

Auto and property insurance shopping experienced 20% year-over-year increases in the fourth quarter of 2024, a new report shows.

TransUnion’s quarterly insurance trend and perspective report also shows profitability for auto and homeowners insurers was uneven. Property insurers are struggling with profitability because of delayed rate increases and natural disasters, according to the report.

The report eyes trends in personal lines insurance, including shopping, migration, and credit-based insurance stability. The report research is largely based on TransUnion’s internal data and analyses. It features information on insurance shopping transactions from July 2023 to December 2024.

Related: Shopping for Homeowners and Auto Insurance Rose in 3Q, Report Shows

Consumers are increasingly shopping for insurance in search of lower rates. For the full year, the report shows auto insurance shopping saw a 13.5% increase. Property insurance shopping rose 16.7%.

Customers weren’t just shopping, they were switching carriers, with 40% of insurance shoppers going to a new provider. The figure was consistent for the past year-and-a-half, but it represents an increase from historical averages closer to 30%, according to TransUnion.

“The increase in shopping levels was initially attributed to aggressive rate hikes and targeted underwriting actions by carriers in 2022 and 2023,” the report states. “While these measures were necessary to restore pricing and underwriting discipline, they also encouraged — and often forced — customers to look for other options.”

Renters insurance also experienced an increase in consumer shopping activity last year, and the segment is being increasingly defined by demographic shifts. Baby boomers are transitioning from homeownership to renting, while Millennials are renting and transitioning to homeownership.

Many Baby Boomers headed into retirement are tapping into a lifetime of equity by selling their homes and renting with their available cash as they downsize and simplify. Yet, these older customers retain many high-value personal assets that may need to be scheduled separately.

However, younger consumers like Millennials and Gen Zers strongly prefer a digital experience and may have policy needs that are more basic, the report shows.