LexisNexis: New Auto Policies Showed Double-Digit Growth in Q1

Though shopping volume has increased in early 2023, the report predicts the possibility of a slowdown in the second half of the year, depending on economic conditions and their impact on vehicle sales. (Credit: Dragonstock/Adobe Stock)

Increases in auto insurance policy rates are inspiring customers to shop around for more affordable options, and the Q1 2023 LexisNexis Insurance Demand Meter recorded the highest level of policy shopping volume since the Demand Meter began in the first quarter of 2020.

New policy growth was particularly strong in to start 2023 at 17%; up from the 10.2% growth recorded in Q4 2022. According to the report, new policy growth occurred across all age demographics, but surprisingly those in the 66+ age group led all others with 27% growth. This, combined with the findings of their Q4 2022 report, shows older drivers – who have traditionally not done much policy shopping, and were unlikely to switch when they did shop – are shopping and switching at an accelerated pace, which make them an important demographic for carriers to consider when creating marketing campaigns.