TransUnion Identifies Key Trends in Auto and Home Insurance Shopping for 2025
TransUnion's latest Insurance Personal Lines Trends and Perspectives Report reveals a rise in auto and home insurance shopping in early 2025. Auto insurance shopping increased by 10% year-over-year in Q1 2025, with a notable return of higher-risk consumer activity—the most since late 2021—which suggests insurers are focusing rate increases more on high-risk segments than applying broad rate hikes. Meanwhile, home insurance shopping grew by 5% year-over-year. The report highlights that while rates have stabilized for mid- and low-risk individuals, uncertainty remains due to factors like the cost and availability of repair parts and the increasing frequency and severity of weather-related catastrophes, which drove substantial losses in 2024 with 27 billion-dollar disasters costing about $183 billion.
Another significant insight pertains to generational shifts in homeownership. Compared to 2009, when over half of Gen X consumers owned homes, only 41% of Millennials at a similar age did so by 2024. This decline is linked to rising housing costs and inventory shortages, which have delayed or limited homeownership among younger generations. This trend has led to more multi-generational households, with only 38% of credit-active occupants living alone in 2024 compared to 45% in 2009. Consumers across generations also anticipate providing financial support to elder family members in the coming years.
These demographic shifts have substantial implications for home insurance. Multi-generational households introduce different risk profiles and marketing challenges that require insurers to adapt with more flexible and tailored policy offerings. Recognizing these evolving household structures can enable insurers to better price risks and design marketing strategies that resonate with contemporary consumer realities.
The report underscores the importance of addressing economic and environmental factors impacting insurance shopping patterns and emphasizes the need for insurers to innovate in policy design and customer outreach. TransUnion promotes its TruAudience® marketing solutions as tools to aid insurers in effective audience segmentation and campaign execution based on these emerging trends.
TransUnion's research is based on comprehensive internal data analyses, excluding certain states where credit-based insurance scoring is restricted. The quarterly report offers valuable insights into personal lines insurance trends, vital for strategic planning and competitive positioning in an increasingly complex insurance landscape.