Younger generations, millennials and Gen Z, are the primary groups driving the shopping activity. (Photo: Shutterstock)

Most people don't typically associate the word "science" with shopping for auto insurance; however, there are many factors taken into consideration when trying to determine who is looking for insurance each year. In TransUnion's most recent Auto Insurance Shopping Index, 21.7% of consumers shopped for insurance in 2018, up from 20% in the previous year.

The primary groups driving the shopping activity were the younger generations (millennials and Gen Z), who accounted for 39% of the total shoppers, and the subprime credit market which shopped nearly twice as much as prime or above credit consumers. Not surprisingly, insurance companies also spent a record amount advertising to consumers in 2018, rising 13.2% (Auto Insurance Report. Vol. 26#31/) over the prior year to total a staggering $7.49B.

While increased ad spend is almost certainly the primary driver of insurance shopping, not every carrier has the resources or appetite to spend the same amount of money on advertising as the top 10 carriers. It's key to understanding the other factors that cause people to shop and leveraging these to get a better return on your advertising spend.