Auto Insurance Quote Experience

Personal auto insurance shopping has gone nuclear

If it seems like new business has picked up, you’re right. The latest issue of the LexisNexis® Insurance Demand Meter shows that:

• Shopping in Q3 2024 was up 31.2% over Q3 2023.
• New policy growth for Q3 2024 was 25.9% over Q3 2023.
• 45% of the policies-in-force were shopped at least once in the previous 12 months by the end of Q3 2024.

That’s not all. We found that consumers aged 66 and older lead in shopping growth. Historically this demographic is the most stable part of an insurer’s book of business, but it’s likely that cost-of-living pressures are putting pressure on people with fixed incomes, prompting more shopping.

Speaking of cost-of-living pressures, we’re also seeing shifts in household demographics as more adult children move back into the family home, with one study reporting that 46% of parents say their adult children have moved back home at some point.¹ These shifts could prompt increased shopping to cover the changing needs of the household.

In other words, consumers are shopping more than ever and that’s putting the quoting experience under the spotlight. Meanwhile, household demographics are shifting and that’s putting risk assessment under the spotlight.

Half of drivers have a household profile that’s consistent with their prior policy

Let’s consider two data points:

• In 2024, a quote takes about 5 minutes and includes an average of 40 questions.²
• 47% of policies have no change in drivers or vehicles. That is, roughly half of drivers are coming to you with a household profile that’s consistent with what they had before.³

If you could identify the drivers with no changes to their household, you could offer them a quote earlier in the process to incent them to stay in your workflow for longer.

That’s why we developed an additional data pack element for LexisNexis® Auto Data Prefill. In addition to the driver and vehicle prefill information you receive with a standard Auto Data Prefill request, you also get driver and vehicle status indicators. The indicator is scored from 0 to 100, and the higher the score the less likely there have been changes to the household.

That means you can quickly identify whether an individual can be fast-tracked through your workflow, or whether they warrant closer scrutiny.

Fast-track quotes to improve the customer experience

Nearly half of consumers are coming to you with a household profile that is consistent with what they had on their prior policy. By using driver and vehicle status indicators, you can know which consumers fall into this segment, so you can fast-track a quote to them and keep them in the workflow.

By using prefill tools such as driver and vehicle status indicators to improve the quoting experience, you can position yourself as an insurer that’s easy to work with and carve out a competitive advantage.