Number of drivers seeking lower insurance rates increases by 6%

The number of US customers shopping for car insurance in the first quarter was up 6% from a year earlier, according to credit reporting agency TransUnion, underscoring efforts to cut costs as inflation puts pressure on consumers’ wallets.

WHY IT’S IMPORTANT

Insurance shopping refers to the practice of evaluating different policies to find the one that best suits the customer’s needs.

Customers shop for insurance more active in times of financial stress to look for policies with cheaper premiums.

According to the Bureau of Labor Statistics, auto insurance costs rose 22.6% in April from a year earlier, marking the largest annual increase since the 1970s.

CONTEXT

The increase was caused by an increase in associated costs to repair increasingly complex vehicles. Frequent vehicle damage due to adverse weather conditions has also prompted insurers to charge higher premiums to cover the losses incurred while paying out customer claims.

IMPORTANT QUOTE

“As insurers see improved profitability, it is likely that some will cautiously increase investments in customer acquisition,” said Stothard Deal, vice president of strategic planning for TransUnion’s insurance business.

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