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.
More Industry

Two New Rides Earn Safety Awards
Thanks to vehicle redesigns, two more vehicles have earned IIHS’ Top Safety Pick+ award that builds on the criteria of the lower Top Safety Pick award.
Read More →
How A Simple Phone Call Can Cause a Dealership Data Breach
Despite the sophisticated techniques fraudsters often employ today to gain access to dealerships’ valuable information, they sometimes use a somewhat old-fashioned approach.
Read More →
Texas Rooftop Gets New Owner, Name
Family-owned Lumos Auto Group acquired Acura of the Rio Grande Valley from Bill Bird and will operate the dealership as Lumos Acura.
Read More →
Hyundai Feeling Electric
As the automaker looks to the balance of the decade, it plans to significantly boost its electrified powertrain lineup, including more hybrids and its first extended-range EVs.
Read More →
Dealer Debrief: Luxury Brands are Losing Ground
The quality gap between luxury and mass-market auto brands is narrowing. Today, Lauren is discussing why.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
Longtime Ford Store Changes Hands
The Virginia dealership joins a small area automotive group in a one-dealership transaction, moving from one family franchisee to another.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
ASE Seeks Accurate Technician Pay, Benefits Data
New free membership trial removes cost barrier for dealerships and shops willing to contribute anonymous information to the industry data exchange.
Read More →
No Longer Worth the Price?
Mass-market auto brands are gaining ground on luxury competitors with what used to be premium features, helped along by the pressure of high vehicle prices dogging budget-conscious shoppers.
Read More →
