Elevating Sales of Auto Insurance Mid-Pandemic Despite Price Hikes

​Despite the presence of price hikes of auto insurances, shopping rates also hiked up. The overall shopping rate for auto insurances during the first few months of 2020 was high until the third week of March. After the third week, sales dropped by 14% compared to the previous year. Although by May, shopping rates made a turn and trended higher despite price hikes.

Auto Insurance Before and Now
Before the declaration of COVID-19 as a global pandemic, insurance shopping rates trended higher for eight months compared to the previous years. The pandemic created a toll on many individuals that limits their spending portions due to financial challenges. With price sensitivity as an issue, shopping rates were bound to go down.

Rebates and Discounts
Auto insurance companies had offered $10.5 billion in insurance rebates to customers to provide an effort for financial relief. The rebates became beneficial for both policyholders and carriers.

Based on a survey, it reveals that:

• 22% of policyholders delayed the deadlines of auto insurance payments.
• 45% of policyholders were contacted by their customers for relief or discount.
• 61% of carriers said that the rebates made their loyalty increase to their auto insurer.

However, even with this, it is still too soon to say that shopping rates will continue to rise until the end of the pandemic. There are still a lot of factors to be considered ahead of the increased shopping activity.

Younger Generation versus Older Generation
It is evident that younger generations continuously shopped for auto insurances compared to older generations. The steady increase in sales by the younger generation dipped after the announcement of a global pandemic. Younger generations face more financial challenges and price sensitivities as the negative economic impacts of COVID-19 intensify.

Based on a survey by auto policyholders, the pandemic had a more negative impact on younger consumers compared to older consumers:

• Gen.  Z – 61%
• Millennial – 60%
• Gen. X – 55%
• Baby Boomers – 44%

The difference in shopping behaviors was driven by the disparity of social and economic circumstances, followed by factors that remain uncertain.

Conclusion
With the number of days ahead mixed with uncertainty for consumers, auto insurances are present to relieve any sort of discomfort you might face.

At Robert Nichols Insurance Group, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (561) 406-6153 or Click Here to request a free quote.