BizReport : Research : April 16, 2007

Rise in consumers purchasing auto insurance online

Consumers are beginning to buy auto insurance policies online, whereas in recent years they went no further than obtaining online quotes.

by Helen Leggatt

From 2004 to 2006, 70 million auto insurance quotes were submitted online, but few went on to purchase their insurance policies online. New data, taken from “The 2007 comScore Online Automobile Insurance Report” suggests more and more consumers are prepared to purchase their auto insurance online.

The number of auto insurance quotes submitted online last year rose 15 percent from 2005. The number of policies purchased online rose by 58 percent. That growth has continued into 2007 with the number of insurance quotes submitted during January and February up 29 percent on the same period in 2006. Online insurance policy purchases have also risen in the same period, up 45 percent, according to the study.

"Consumers continue to migrate toward conducting complex financial transactions online," said Kevin Levitt, vice president of comScore Financial Solutions, in a recent press release. "The automobile insurers are supporting this shift with more efficient Web sites and clearer communication of the value proposition for purchasing policies online."

Not all consumers are ready to do their insurance dealings online, reveals the study. Of those who said they would not purchase policies online, 69 percent said they would prefer to speak to or meet with an agent and 53 percent said they did not want to provide personal information online. Fifty-eight percent said they would consider buying their policies online, if they could be guaranteed it was totally secure.

Copies of the report are available via comScore's website.