Insurance shoppers want easy-to-use websites
June 25, 2014
While 35 percent of millennials are likely to buy a car insurance policy based on the best price when comparing plans, 47 percent of Baby Boomers preferred to go after the plan with the lowest premium, according to a recent study by J.D. Power.
But millennials—compared to baby boomers—are interested in different factors when purchasing a policy, according to the 2014 Insurance Website Evaluation Study.
Millennials are interested in different car insurance buying tactics than Baby Boomers.
The report revealed that many young adults are influenced by easy-to-use insurance websites that offer useful information.
Twenty-nine percent of young adults rely on thorough coverage information when making a purchasing decision. More than one-third of millennial respondents stated that a website needs to be “conveyed in a clear and intelligible way.”
“Understanding the preferences of different generations, especially Gen Y consumers, is of utmost importance to ensure that shoppers are having the best experience possible,” said Jeremy Bowler, senior director of global insurance practices at J.D. Power.
Bowler noted that millennials are the second-fastest growing demographic of car buyers behind Baby Boomers.
By the numbers
The study comes from an analysis of 4,000 shopping and 3,000 service experiences reported by consumers. Those involved were asked to engage with various tasks online and rate them on a 5-point scale. A score of 3 was considered “neutral,” while a score of 1 meant “very difficult" and 5 “very easy.”
Two out of five respondents from both Generation X and Y said they would probably purchase a policy from a company that offers easy website navigation. For the older demographics of Baby Boomers and pre-Boomers, those numbers were 36 percent and 33 percent, respectively.
Other statistics from insurance shoppers
While 39 percent of people across all demographics said they would likely buy from an insurer with the lowest quote, the same number said they would purchase from the company with the better-looking website that is easy to navigate.
“The process of getting insurance quotes can be complex for shoppers,” Bowler concludes. “Insurers that provide a (positive) experience can make the process less intimidating.”
Additionally, all demographics were less satisfied with the shopping experience than a company's service, though J.D. Power noted that overall shopping indices have greatly improved year over year.