Fueled in part by what analysts deemed to be higher-risk consumers, auto insurance shopping in the first quarter increased 10% compared to the same period in 2024, according to TransUnion research.

And Mercury Insurance reiterated that credit scores can be one of the top five factors impacting rates.

While the trend of elevated shopping levels has been consistent for some time, TransUnion pointed out a key difference that emerged over the last quarter in the auto insurance space.

Analysts found that higher-risk consumers are once again the most active shoppers for the first time since Q4 2021. TransUnion indicated insurers may have returned to traditional practices of focusing rate increases on higher risk segments, rather than across the board.

As a result, analysts said higher-risk customers are still shopping for lower rates, while mid- and low-risk customers may have seen their rates stabilize. These findings and more are included in TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report, which is available here.

“As rates have settled for the majority of auto insurance customers, we are experiencing a return to historical insurance shopping patterns, which correlate price sensitivity closely to relative insurance risk,” said Patrick Foy, senior director of strategic planning for TransUnion’s insurance business.

“However, uncertainty in the cost and availability of parts for vehicle repairs, could eventually lead to a return of broad-based price increases, and weather-related catastrophes — while still unpredictable — have also become a far more common and costly phenomenon,” Foy said in a news release.

Meanwhile, Mercury Insurance acknowledged prices for just about everything are on the rise these days and that includes car insurance.

While there are a variety of factors that affect car insurance rates, Mercury Insurance emphasized that a person’s driving record is one of the most influential.

“Unlike other factors, your driving record is one that you have some control over. Drivers with a clean motor vehicle record and no at-fault accidents typically get the lowest car insurance rates,” said Kevin Quinn, vice president of auto claims for Mercury Insurance.

“Other key factors that affect your rates include your age, the vehicle you drive and where you live, among others,” Quinn continued in another news release that included a detailed breakdown of the main factors that generally affect car insurance rates:

—Driving record: Insurance companies use a driver’s past as a predictor for future risk. Even just one speeding ticket or accident could raise your rates, according to Mercury Insurance.

“Insurers typically look at your record from the last three to five years, but more serious violations like a DUI or multiple speeding tickets might follow your record for longer,” the company said.

—Age: Age is another big factor that affects insurance rates, especially for younger drivers.

Mercury Insurance noted that data indicates that teenagers are riskier drivers, so they often pay more for auto insurance.

“As drivers become more experienced, their insurance premiums tend to decrease, with the lowest rates generally afforded to those in their mid-50s before rising again for seniors,” the company said.

—Location: States with laws that mandate more coverage types and/or higher coverage limits will likely have higher auto insurance costs — even certain ZIP codes can have higher rates.

“If a policyholder lives in an area that is more prone to vandalism, like a big city for example, car insurance premiums will be higher because the possibility of that policyholder filing a claim is greater,” Quinn said.

—Vehicle type: Before driving that shiny new car off the lot, Mercury Insurance suggested that consumers think about insurance for it.

The company mentioned there are several types of cars that generally cost more to insure, including high-end sports cars, luxury cars and some electric vehicles. This is due to their parts costing more to repair or replace after an accident.

“An EV battery, for example, can cost thousands of dollars to replace if damaged. Generally, cars with strong safety ratings, lower repair costs or advanced safety features cost less to insure,” Mercury Insurance said.

—Credit score: The company acknowledged many drivers are likely unaware that their credit score is fair game for insurance companies when setting rates.

Mercury Insurance indicated that drivers with poor credit file more claims than do drivers with better credit — and more expensive ones, too.

However, Quinn pointed out that a handful of states — including California, Hawaii and Massachusetts — have outlawed or restricted the use of credit scores as a rating factor.

“We understand that in these uncertain economic times, many are looking to reduce their auto insurance spend,” Quinn said. “Therefore, it is best to focus on the factors that you can control. Choose an affordable vehicle with good safety ratings. Research average insurance rates in different ZIP codes before planning a move. And, most importantly, be attentive and follow the law when behind the wheel.”

TransUnion closed by mentioning there also has been a shift in home composition, with two- and even three-generation households becoming more common.

Only 38% of credit-active occupants were living alone as of 2024, compared to 45% in 2009, TransUnion said.

And consumers seem to expect this trend to continue.

According to a recent TransUnion consumer survey,18% of Gen X, 26% of millennials and 35% of Gen Z plan to provide financial support to parents and grandparents in the next five years.

“As consumers are readjusting their lifestyles in the face of new economic realities, insurers must also become flexible with their policy offerings,” Foy said. “Multi-generational households represent a different risk profile as well as a different audience segment for their marketing.”