In the first quarter of 2022, consumer shopping and switching for personal auto declined, according to the “2022 Q1 Shopping LIST Report" by J.D. Power, which captured brand-level auto insurance shopping insights from Jan. 1 through March 31, 2022.

Additionally, with increasing inflation, and as the cost of new and used vehicles has spiked in recent quarters, many consumers are searching for value-based alternatives to traditional insurance policies.

The report showed that auto insurance switching is down 3.2% compared to the last quarter, while quoting is down 11.1% for the same period, noting that “some of the slowdown may be attributable to a reduction in new vehicle production."

However, “a heightened percentage of younger customers are shopping for insurance when they do buy a car," the report said. Simultaneously, “older generations are feeling rate hike pressure leading to their shopping activity."

Meanwhile, every generation is seeking more value for their insurance spending, which has led to increasing interest in usage-based auto insurance (UBI) products. “This is likely the result of the increased cost of mobility, which is driving everyone to look for alternatives to traditional time-based insurance policies," the report said.

Auto insurance shopping by generation is led by millennials (35%), followed by Generation X (30%) and baby boomers and older (29%). Generation Z completes the data set with 6% of insurance shopping. While auto insurance shopping rates by millennials and Gen Z increased in the last quarter, they decreased for Gen X and boomers.

“Younger consumers are shopping at a much higher rate than older consumers. While older consumers tend to be more rate focused with their shopping, younger consumers—some of whom are just getting into the market—are shopping for the first time as they purchase their first vehicle," the report said. “These younger cohorts are also more likely to shop due to UBI programs, a trend that we expect to increase as auto rates rise with inflation and prevailing shortages in both new and used cars as well as increasing costs of parts and services."

Will Jones is IA editor-in-chief.