While shopping for auto insurance, price, of course, can be a deciding factor for consumers. However, a recent study by J.D. Power reveals that younger generations—Gen X and Gen Y—are less likely to select the lowest-priced brand than Baby Boomers.
Younger auto insurance shoppers are more likely to select their car insurance brand based on website information and navigation, according to the J.D. Power 2014 Insurance Website Evaluation Study. While price is a factor for 35% of Gen X and Gen Y shoppers, and is a major concern for 47% of Boomers, Gen Y shoppers are more concerned with understanding information regarding different brands and policies.
Providing an appropriate amount of information impacts the decision of 29% of Gen Y shoppers and 36% are influenced by whether or not information was conveyed in a clear and intelligible way.
“In the U.S. automobile marketplace, Gen Y is the fastest growing segment of new-vehicle buyers—second only to Boomers. With the growing number of Gen Y insurance shoppers, insurers need to think about how to present information that best addresses the needs of this highly attractive consumer group,” said Jeremy Bowler, senior director of the global insurance practice at J.D. Power.
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“Understanding the preferences of different generations, especially Gen Y consumers, is of utmost importance to ensure that shoppers are having the best experience possible.”
The 2014 Insurance Website Evaluation Study examines online consumer experiences among shoppers seeking quotes, as well as existing customers seeking typical policy servicing activities. Based on more than 3,000 service evaluations and 4,000 shopping evaluations, key findings include:
- Younger generations—Gen X (40%) and Gen Y (40%)—are more likely to select insurance brands with the easiest navigation, compared with Boomers (36%) and Pre-Boomers (33%)
- Shoppers are most likely to choose the brand for purchase that they indicate had the lowest quote (39%), looked better (39%) and was easier to navigate (38%)
- The service satisfaction index average for the insurance industry is 425 (on a 500-point scale), which is 73 points higher than the overall shopping satisfaction index
- Individual insurer websites are most differentiated in terms of the variability of the lowest quotes offered, site appearance and ease of navigation
“The process of getting insurance quotes can be complex for shoppers; and for those unfamiliar with insurance terminology, it can be quite difficult and frustrating,” said Bowler. “Insurers that provide a user-friendly, informative experience can make the process less intimidating and help improve the overall website shopping experience.”