Auto and home insurance markets rise after 2022 decline

Auto and home insurance premiums to increase in 2022, according to reports. (iStock)

Auto and home insurance purchase rates rose 7% and 5%, respectively, year over year in the fourth quarter, according to recent TransUnion report. However, the agency sees this growth as a sign of recovery rather than a significant increase in purchases.

“Insurance markets contracted significantly in the 4th quarter of 2021 and generally declined throughout 2022,” TransUnion said in its report.

The company attributes the poor year to several factors, including high inflation, supply chain issues affecting the auto and home industries, reduced marketing spend on auto insurance and rising premiums. But the tide may be changing.

“Our report found greater shopping activity among certain geographic and demographic segments,” Michelle Jackson, senior director of personal property and casualty at TransUnion’s insurance business, said in a statement. “For example, the western US saw the highest purchases for auto and renters insurance.”

“During 2022, the economy still felt the lingering effects of the COVID-19 pandemic lockdowns, inflation and supply chain disruptions,” the report added. “But for the insurance industry, if the end of the year wasn’t a time of new growth, it was at least a return to form for insurance buyers.”

If you want to lower your overall car or home costs, you could consider switching insurance carriers. You can visit Credible to compare your optionswithout affecting your credit score.


Price is top of mind for car insurance shoppers

The average American spent $1,705 on car insurance in 2022, according to Insurify’s 2022 Car Insurance Trends Report. This percentage is up 4% from 2021 and 17% from 2020. As a result, price is an important factor when buying car insurance.

Half (50%) of Americans considering switching car insurance companies said their policies were too expensive, and 37% said they would switch carriers if they found a better deal, according to a survey by the data firm. AnalyticsIQ. And 14% said they decided to combine multiple policies. But satisfaction also drove many buyer decisions.

“Furthermore, level of satisfaction predicted the predicted likelihood of switching insurance carriers,” AnalyticsIQ said in the research report. “As satisfaction scores decreased, the likelihood of saying ‘yes’ or ‘maybe’ to switching carriers increased.”

In addition, almost a third (30%) of drivers are considering switching to a new insurance provider to save costs, Insurify said. And 65% of drivers said they are thinking about driving less. However, more employees will likely need to return to the office in 2023, according to the TransUnion report.

“Increased commuting will likely translate into increased demand for cars,” Transunion said in its report. “Property insurers may also have increased exposures.”

If you’re interested in lowering your car insurance costs, consider switching insurance providers to potentially lower your monthly premiums. You can visit Credible to get your personalized pricewithout affecting your credit score.


Nearly half of homeowners say their insurance went up

An increase in natural disasters and other factors caused homeowner insurance costs to rise for many in 2022, according to analysis by Nearly half (43%) of Americans said their annual insurance premiums increased starting in 2021, according to the report.

Home insurance costs an average of $1,584 a year, or $132 a month, according to SafeHome. See how it breaks down by region.

  • South: $1,834
  • West: $1,473
  • Midwest: $1,441
  • Northeast: $1,301

Additionally, one in ten homeowners plan to switch to a different insurance company in the near future. And 76% of those people do it to get a better price.

“The increasing number of catastrophic weather events, such as hurricanes and wildfires, are straining homeowners and insurers, leading to significant changes in the insurance market,” Safehome said in its report. “As a result, homeowners face rising costs or even canceled insurance premiums.”

If you want to lower your overall housing costs, you could consider switching home owners insurance providers to help lower your monthly payments. You can visit Credible to speak with an insurance professional and get your home owner’s insurance quote.

Have a finance question but don’t know who to ask? Email Credible Money Expert at and your question can be answered by Credible in the Money Expert column.

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