As the cost of auto insurance rises and consumers look for ways to cut back on monthly expenses, more drivers are turning to a safe driving discount option to help lower their premiums, according to recent data.
The number of consumers who accepted a telematics device offer from their auto insurance provider has gone up 33% since the end of 2021, according to a report from TransUnion. Telematics programs use connected devices, smartphones or a mobile app from an auto manufacturer to monitor and report details about driving habits. Similar data options monitor for fires, water leaks and other hazard risks in homes.
By using these devices, consumers can show their driving habits to their auto insurance provider to lower their rates.
It is clear that high inflation levels are impacting consumer wallets, and many people are considering new technologies that may help them save money, said Michelle Jackson, senior director of TransUnion's personal property and casualty insurance business. More consumers are warming up to the idea of using a telematics tool to enhance safe driving and lower costs in the insurance industry. This evolving sentiment could carry over to similar offerings in the property space. If you are looking for a way to save on your auto insurance, comparing multiple insurance companies can help you find the best rate. You can find personalized auto insurance quotes on Credible and choose the best option for you.
As inflation has risen over the past year, so has the cost of auto insurance. According to TransUnion's report, the cumulative auto insurance prices have gone up an average of 4% since last year, with some states showing increases of nearly 20% for certain drivers.
The report stated that consumers are shopping for lower premiums, better coverage and better service from their insurers, a trend noted across auto, property and rental insurance.
More than 39% of drivers said they were shopping for new auto insurance in response to rising costs, and 21% of those who were shopping ended up switching their insurance provider.
If you want 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 because different providers offer different discounts. Some insurance policies may offer safe driver discounts through either telematics options or by viewing your driving record, while others may offer better discounts for young drivers. You can compare multiple providers at once and choose the one with the best rate on Credible.
As the price of new auto insurance went up, consumers shopped less for property insurance, according to TransUnion. In 2021 property insurance shopping rates went up but dropped off in 2022 as a cooling of housing demand.
In 2021, auto insurance shopping rates were depressed due to supply chain shortages slowing down the market, while property insurance demand was high. TransUnion said that home and auto insurance are reaching an equilibrium.
Jackson said that the auto and property insurance industries found some equilibrium this quarter after a tumultuous 2021. The dual effect of inflation is expected to continue through 2022, which will likely lead to pricing consumers from new homes and vehicles while motivating them to seek out more affordable coverage. Consumers looking for affordable home and auto insurance coverage can contact Credible to speak to an insurance expert and get all of their questions answered.
You can email The Credible Money Expert at moneyexpert credible.com and your question might be answered by Credible Money Expert in our Money Expert column.