Online Auto Insurance Quotes and Policies Purchased Rebound in 2009
The number of auto insurance quotes submitted online increased 21 percent in 2009 versus the prior year, while the number of policies purchased online increased 22 percent, reflecting consumers’ desire to shop around for better prices. These strong growth rates came on the heels of a fairly weak 2008, the result of a tough second half of the year that saw the stock market tumble, gas prices surge and advertising from auto insurers’ decrease. These factors helped drive a decline in the number of quotes submitted, while the number of policies purchased grew significantly slower than in previous years.
Significant Increase Expected in the Future Number of U.S. Consumers Likely to Purchase Auto Insurance Online
Consumers who had not yet purchased auto insurance policies online were asked how likely they would be to purchase online in the future, with more than one-third (35 percent) saying they would be likely to do so, an increase of 7 percentage points from the previous year. The percentage of respondents unsure of whether or not they would purchase online in the future remained stable at 25 percent, while those that were unlikely to purchase auto insurance online dropped from 48 percent to 39 percent.
“Consumers are showing increased willingness to trust the online channel for gathering information on important financial decisions, as well as completing these transactions,” continued Ms. Engleson. “Although it’s unlikely the Internet will completely replace other channels for purchasing auto insurance, having an active online presence is now critical for providers to attract and retain customers in this highly competitive industry. As we begin to emerge from the recession, providers who seized the opportunity to reach consumers who were shopping around online in the past year will be better positioned for future growth.”