Consumers accept telematics option to lower auto insurance premiums: TransUnion #Consumers #accept #telematics #option #auto #insurance #premiums #TransUnion Welcome to Lopoid
Consumers are increasingly accepting telematics options to lower their auto insurance premiums, TransUnion said. (iStock)
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 safe driving discount option to help lower their premiums, according to recent data.
A new report from TransUnion showed the number of consumers who 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 mobile app to monitor and report details about driving habits. In homes, similar telematics data options monitor for fires, water leaks and other hazard risks.
By using these devices, consumers can potentially lower their rates by demonstrating safe driving habits to their auto insurance provider.
“It’s clear that high inflation levels are impacting consumer wallets, and many people are now considering new technologies that may help them save money,” Michelle Jackson, senior director of TransUnion’s personal property and casualty insurance business, said. “In the insurance industry, more consumers are warming to the idea of using a telematics tool to enhance safe driving while also lowering costs. 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.
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Auto insurance prices rising
As inflation has risen over the past year, so has the cost of auto insurance. Cumulative auto insurance prices are up an average of 4% since last year, with some states showing increases of nearly 20% for certain drivers, according to TransUnion’s report.
“In response, consumers are shopping for lower premiums, 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 shopping for new auto insurance in response to rising costs, and 21% of those who were shopping ended up following through and switching their auto insurance provider.
If you are looking to lower your car insurance premiums, switching your provider could help you save. When it comes to auto insurance, loyalty does not always pay off since different providers offer different discounts. For example, some insurance policies may offer safe driver discounts through telematics options or by viewing your driving record, while others have better discounts for young drivers. You can visit Credible to compare multiple providers at once and choose the one with the best rate for you.
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Property insurance searches decreased
As shopping for new auto insurance rose, consumers shopped less for property insurance, according to TransUnion. Property insurance shopping rates surged in 2021 but leveled off in 2022 as mortgage interest rates trended higher, cooling the housing demand.
Conversely, auto insurance shopping rates were depressed in 2021 due to supply chain shortages slowing down the market, while property insurance demand was high. Now, TransUnion said that home and auto insurance are reaching an equilibrium.
“It appears that auto and property insurance industries found some equilibrium this quarter, after a tumultuous 2021,” Jackson said. “Inflation is projected to continue through 2022, which will likely have the dual effect of pricing out consumers from new homes and vehicles while motivating them to seek out more affordable coverage.”
Consumers looking to find affordable home and auto insurance coverage can contact Credible to speak to an insurance expert and get all of their questions answered.
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