In this final blog post in our three-part series comparing 2020 to 2019 U.S. auto insurance shopping volume growth, we’re focusing on the differences we’ve observed when segmenting by shopper age.
Beginning in late March of 2020, we examined the impact the COVID-19 pandemic may have had on shopping behavior among the different age groups ― noting weekly and monthly changes as the year progressed. In this analysis, we’re going to examine how the entire year’s auto insurance shopping growth data compared to 2019 data ― across all six age segments.
2020: A tale of many ages…
The beginning of 2020 was marked by strong shopping volume growth among our oldest age segment ― 66 years of age and older. Despite the COVID shutdowns in late-March and early-April, growth remained at or above 10% in all but two months including topping out at nearly 22% in May. Although shopping volume growth slowed in late summer and fall, the slowing was consistent across all age groups and the segment finished the year strong ― and stronger than it began in January.
Our youngest age segment, 16-25 years of age, began the year with the lowest growth and showed the steepest decline among all segments during the shutdown months. However, we did see a significant increase in growth during the latter half of the year, beginning with a spike in September. This segment finished the year as one of the stronger segments for shopping volume growth. Interestingly, while the 26-35 years of age group followed a similar trajectory to the youngest segment through August, it didn’t experience the increase in growth in September and closed out the year with the softest shopping volume growth.
The “middle of the pack” segments are those 36-45 and 46-55 years of age and are also the largest age groups. These segments never experienced the significant peaks and valleys experienced by the other segments. While these segments’ negative growth took place over the two months of shutdown, both segments performed between 5% and 10% above 2019 for most of the year.
Our final age segment, shoppers 56-65 years of age, was the second highest shopping volume growth segment in 2020, both beginning and ending the year in that position ― right behind the 66 years and older segment and following a similar trajectory. Like the 66 years and older group, this segment was the only other age segment to maintain positive volume growth throughout 2020.
Sometime age makes a difference, sometimes it doesn’t
To wrap up our analysis, every segment ended the year with a positive shopping volume growth increase. So, what’s next? Does this mark a new trend in shopping for baby boomers? What’s going to prompt Gen X to shop? How will the younger age segments behave in 2021? Are you positioned to win in the markets that are shopping the most? For a comprehensive look at U.S auto insurance insights be sure to read our quarterly Insurance Demand Meter.
Thank you for joining us on our retrospective journey of auto insurance shopping volume growth in 2020.
Other articles in this series: