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Credit unions can take advantage of members shopping their coverage more often.
Sponsored by CUNA Mutual Group
It’s no secret that auto insurance costs are on the rise. According to consumerreports.com, most consumers saw a cost increase of about 8 percent in 2017.
There are many reasons for the spike. Collision claims rose by 11 percent and comprehensive claims increased by 25 percent for the two years ending June 30, 2017, according to kiplinger.com. This is likely due to the fact that Americans are driving more miles. But the primary reason is that with new cars comes new technology.
Just think of the safety features in current model cars. Sensors and cameras give new perspectives to drivers and alert them in an effort to avoid accidents. But that doesn’t prevent them completely. According to Liberty Mutual, repairing the bumper of an entry level luxury car in 2014 cost about $1,845. In 2016, that cost jumped to $3,550.
For credit unions, the impact of these rates could provide a tremendous opportunity. That’s because as rates rise, consumers are shopping around more at renewal time. What was once a one-time decision tied to a purchase or loan event is now an annual opportunity to create a connection. In fact, 66 percent of consumers are shopping because of increasing prices, while only 19 percent are shopping because they bought a new car, according to ComScore’s 2015 U.S. Auto Shopping Report.
Credit unions can now deepen their member relationships or attract new members with their auto insurance options more frequently. How? You can start by taking a look at your website.
The rise in mobile devices continues to increase the prevalence of online shopping. In fact, 74 percent of shoppers are conducting research online, but only 25 percent of them are converting, according to research from J.D. Powers. Is your website optimized for mobile devices? Are you making it easy to close the sale?
Comparison shopping is also a critical factor for today’s price-based shoppers. Are you making it easy for members to compare and contrast the value of the different options your credit union offers?
Rising insurance costs are just one of the many trends that are revealing new opportunities for credit unions to strengthen relationships with their members through auto and home insurance. To learn more about the trends—and how you can capitalize on them—download our infographic.
Corrin Maier is VP/partner management for CUES Supplier member CUNA Mutual Group, Madison Wis., a provider of insurance and financial services to credit unions and their members. In this role, Corrin is responsible for leading the strategic partnerships with Liberty Mutual, Esurance, and GoHealth, and ensuring credit union members get the protection they need.
If you liked this post, you may be interested in CUES School of Consumer Lending and CUES Advanced School of Consumer Lending, Aug. 13-4 and Aug. 15-16 respectively, both in Denver.
