Insurance insights: how US consumers evaluate and purchase personal insurance

Personal insurance can be a tricky shopping experience for the average consumer.

When the very nature of a purchasing decision comes down to uncertainty about the future, habits around evaluating and selecting insurance providers can vary quite a bit. We surveyed US consumers to learn more about what helps them decide on the right insurance provider, plans, and coverage for them. 

Top US insurance takeaways

Nearly all consumers compare quotes before selecting an insurance provider 

73.5% said they compare quotes from 1-3 providers and 18% said they compare from 4+ providers before making a decision.

Online reputation is an important factor for US consumers when choosing an insurance provider

The vast majority of consumers are reviewing their rates after they sign up 

Only 13.4% said they rarely or never review their rates after signing up.

Nearly all US consumers read reviews before selecting the right insurance provider

Consumers aged 65+ rely more heavily on reviews slightly more than other age groups

68.4% of consumers 65+ look at reviews on multiple sites when reviewing an insurance provider’s online reputation whereas 57.3% of consumers overall selected the same.

Consumers aged 18-34 value content and guides on selecting the right insurance more than other age groups 

41.1% of consumers 18-34 said they read guides on selecting insurance compared to 32.1% of US consumers across all age groups.

Consumers aged 18-34 prefer to go with a higher quote and better coverage than other age groups, who preferred aiming for the middle

36.1% of consumers aged 18-34 said they go for a higher quote with better coverage compared to 23.3% for the average across age groups.

Consumers shopping for pet insurance and travel insurance look into an insurance provider’s online reputation more than other types of insurance buyers 

20.6% of our respondents said they look into an insurance provider’s online reputation to a very large extent but for pet insurance users this was 32.9% and for travel insurance this was a whopping 39.3%.

Nearly a fifth of US consumers do not use any type of personal insurance 

17.5% selected none when asked which types of personal insurance they use.

What this means for your insurance business: 

• The majority of consumers are looking into your online reputation (some very heavily) so attention to building a strong reputation is crucial.

• Many consumers (especially ones aged 18-34) are reading guides around selecting insurance. Creating these for your customers can help you stand out amongst your competitors and make their decision process easier.

• Online reputation is important for all types of personal insurance, but it’s even more important for travel and pet insurance companies.

• Younger consumers are willing to pay more for better coverage than older age groups.

• The vast majority of your customers are reviewing their rates. Getting sneaky about raising rates without proper communication can damage your reputation and anger your customers.

Having a strong online reputation doesn’t just help you avoid turning off potential new customers with negative reviews. You can also leverage it to more easily convert new customers as well. Book a demo to learn more about how Trustpilot can help you build a strong reputation and grow your customer base.

*Results based on a survey of 500 US consumers the week of October 2, 2023