Renters insurance market plummets, property coverage stabilizes

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Property Insurance Purchases Show More Resilience Than Renters Insurance Purchases, While Auto Insurance Purchases Remain Flat, According to JD Power’s Latest Quarterly Loyalty Indicator and Purchasing Trends (LIST) and TransUnion.

The percentage change in ownership insurance purchases hovered around 4-5% for most of the second quarter of 2022, while the percentage change in renters’ insurance purchases during this period fell from around -5% to -15%. These two stats had remained fairly aligned through the ups and downs of LIST reports since January 2021, but since February 2022 they have started to diverge.

A TransUnion executive attributes the increase in property insurance purchases to an increase in millennials buy or plan to buy houses. “Millennials are still optimistic about homeownership, with 40% intending to apply for a mortgage,” said Michelle Jackson, senior director of personal lines market strategy at TransUnion. , in a press release.

According to research from TransUnion, Gen X and Millennials account for the largest percentage increase in home shopping, increasing 11-14% year-over-year.

In automobile insurance, the increase in purchase rates held steady at 11.7% compared to 11.8% in the second quarter. The turnover rate among auto insurance policyholders increased to 3.8% from 3.6% in the previous quarter.

Analysis of the LIST report revealed a significant change in the characteristics of motor insurance policyholders with state farm compared to Liberty Mutual. Both State Farm and Liberty Mutual have lost owners with two cars and two drivers, but renters who have one car and one driver go to State Farm while Liberty Mutual gets the lucrative deals from owners with three or more cars and three drivers. or more. .

In the third quarter, State Farm held 16.8% of the auto insurance quotes market, while Liberty Mutual held 10.6%.

While auto insurance purchase rates remained stable, usage-based insurance programs have been offered more, the report notes. In September, 22.1% of car insurance buyers with poor to fair credit chose UBI, while 17.8% of those with good to excellent credit also did so.

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