As the cost of auto insurance rises and consumers look for ways to cut back on their monthly expenses, more drivers are turning to a safer driving discount option to help lower their premiums, according to recent data.
A new report The number of consumers who have accepted a telematics device offer from their auto insurance provider surged 33% since the end of 2021. Telematics programs use connected devices, smartphones or an auto manufacturer to monitor and report information about driving habits. In homes, similar telematics data options to monitor fires, water leaks and other hazard risks.
By using these devices, consumers can afford lower rates than their auto insurance provider.
“It’s clear that high inflation levels are impacting consumer wallets, and many people now have new technologies that may help them save money,” said Michelle Jackson, senior director of TransUnion’s personal property and casualty insurance business. “In the insurance industry, more and more customers are using the idea of a telematics tool to increase the costs of driving while safe. This evolving sentiment could carry over to similar offerings in the property space.”
If you are looking for ways to save on your auto insurance, comparing multiple insurance companies can help you find the best rate. You can visit credible to find personalized auto insurance quotes and choose the best option for you.
THIRD STRAIGHT MONTH FOR NEW VEHICLE PRICES DROP, BUT DRIVERS STILL PAYING OVER STICKER PRICE: DATA
Auto insurance prices are rising
As inflation has risen over the past year, so has the cost of auto insurance. Cumulative auto insurance prices are up from an average of 4% last year, with some states showing some 20% of certain drivers, according to TransUnion’s report.
“In response, consumers are looking for lower premiums for shopping, better coverage and better service from their insurer, a trend noted across auto, property and rental insurance,” the report stated.
About 39% of drivers reported rising auto insurance costs for shopping, and 21% of those who were shopping were following their auto insurance provider.
If you are looking for lower car insurance premiums, switching your provider could help you save. When it comes to auto insurance, loyalty does not always mean that different providers offer different discounts. For example, some insurance policies may offer safe driver discounts through telematics options or viewing your driving record, while others have better drivers for better discounts. You can visit Credits to compare multiple providers at once and choose the one with the best rate for you.
DRIVERS WITH LOWER CREDIT SCORES PAY AN AVERAGE 114% MORE FOR AUTO INSURANCE, STUDY SAYS
Property insurance searches decreased
As auto insurance rose for shopping, shoppers less for property insurance, according to TransUnion. Property insurance shopping rates surged in 2021 but leveled off in 2022 mortgage interest rates trended highercooling the housing demand.
Conversely, auto insurance shopping rates were depressed in 2021 due to slowing down supply chain shortages, while property insurance demand was high. Now, TransUnion said that home and auto insurance are an equilibrium.
“It appears that the auto and property insurance industries found some equilibrium this quarter, followed by a tumultuous 2021,” Jackson said. “Inflation is projected to continue through 2022, which is likely to have a dual effect on consumers seeking out new homes and vehicles while seeking out more affordable coverage.”
Consumers are looking to find affordable home and auto insurance coverage contact credible to speak to an insurance expert and get all of their questions answered.
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question may be answered by our Money Expert column.