When comparing consumers across all credit levels, there was a clear overall trend change in that consumers with high credit scores continued to increase their auto insurance purchases.
Auto insurance purchases by credit level (Q2 2022 vs Q2 2021)
|Low credit scores (300-500)||Average credit scores (501-700)||High credit scores (701+)|
“The lack of new vehicle purchases depressed overall auto insurance purchases,” it said
Migration activity in southern states drives the purchase of homeowners insurance
Overall, homeowner insurance purchases saw a modest increase (4%) in the second quarter of 2022, compared to the same time last year. This trend was mainly driven by activity in
“We’re still seeing interest in moving to sunnier environments, which has led to increased purchases of homeowners insurance in states such as
It is possible for the market to make a comeback. According to a TransUnion Consumer Pulse survey conducted in the second quarter of this year, 32% of consumers reported that they will apply for a mortgage within the next year—a 4% increase from Q1 2022. Of those surveyed, Millennials led the all generations with 40%. This corresponds with our observations of homeowner purchases by generation, with Gen X and Millennials seeing the highest growth in purchases year-over-year (between 11%-14%).
The role of rent in securing property
Another factor in the slowdown in property insurance is that renters’ insurance purchases decreased significantly (10%) in the second quarter of 2022. While purchases were down across all generations, purchases among Baby Boomer and Silent Generation renters decreased by 16%, compared to Q2 2021.
“This is almost certainly a correction after an unusually large increase seen within the same group last year, when millions of older homeowners cashed in on their home equity and moved into the rental market. Given that they are typically more financially stable, they were more likely to purchase or maintain coverage for their new rental home,” Jackson added.
In addition, purchases in the second quarter of 2022 among Gen Z renters decreased by 12%, compared to the second quarter of 2021. This can be attributed to an overall increase in rents: According to a joint
For additional insights into the personal lines insurance market, the full report can be accessed here.
About the TransUnion Insurance Trends and Outlook Report
Previously, Personal lines insurance shopping report, this quarterly publication examines trends in the personal lines insurance industry, including acquisitions, migration, breaches, stability of credit-based insurance and more. The Trends and Outlook Report research is based entirely on TransUnion’s extensive internal data and analysis. It includes information on insurance purchase transactions from
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