Consumers Trying to Keep Down Insurance Costs
Though rates may be stabilizing, many pay out of pocket for repairs, shop for new carriers.

The number of consumers shopping for new insurance was up 7% year-over-year in the second quarter, despite rates being flat.
Pexels/Sindre Fs
With the cost of auto insurance on the rise in recent years, along with car prices and other expenses, consumers are employing all the avenues they can to save money on the necessity.
A LendingTree survey of 2,000 U.S. consumers found that more than a third have opted to pay out of pocket for repairs due to collisions or other incidents. The poll further revealed that 24% have regretted filing an auto insurance claim.
Meanwhile, the number of consumers shopping for new insurance keeps increasing, up 7% year-over-year in the second quarter and setting a record for the second straight quarter, according to TransUnion. That’s despite the Consumer Price Index for auto insurance being flat in May after steady increases since late 2021.
“It is very encouraging to see indicators that carriers are returning to rate adequacy, and ultimately profitability,” said TransUnion insurance business unit’s Stothhard Deal.
Despite rates showing signs of stabilizing, the LendingTree poll found that for consumers who’ve paid for repairs without their insurers’ help, 42% said they wanted to avoid an insurance rate increase as a result of filing a claim, while 59% indicated the damage was minor, and 44% said their deductibles were higher than the cost of repair.
LendingTree said 76% of survey respondents who’ve paid for repairs themselves had deductibles under $1,000 and 65% spent less than $1,000.
Of respondents who have filed insurance claims for repairs, 24% said they regretted it, 59% of those due to insurance rate bumps, 36% due to reduced vehicle value, and 33% because of a high deductible.
The survey found that 73% of consumers prefer to pay for minor repairs themselves than file a claim, and about half have paid out of pocket for damages that would’ve been covered by their insurance.
Originally posted on Auto Dealer Today
More F&I

Four-Figure Loan Payments on the Rise
A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.
Read More →
APCO Holdings Acquires Fidelity Dealer Services
The finance-and-insurance product provider says the addition strengthens EasyCare’s reach across key markets.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
Ensure Your Clients Are Sure About Reinsurance
Industry experts recently broke down the complicated profit center at Agent Summit. Learn what’s relevant and what’s new to share with your dealers.
Read More →
Car Loans More Plentiful
May access opens up, as risk segments figured largely in the increased availability, Cox Automotive reported.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
New-Vehicle Financing Hits Record
Consumers are seeking ways to make financing new-vehicle purchases manageable, from extended loan terms to smaller down payments, according to Edmunds.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →