A new study by WalletHub shows how credit data affects the cost of insurance policies in each of the 50 states and the District of Columbia.
WalletHub compared the cost of policies from five of the country’s largest auto insurance companies for a pair of hypothetical applicants who are identical save for their credit standing. One has excellent credit, and the other has no credit.
The five insurers were: Geico, Progressive, State Farm, Allstate and Farmers Insurance.
People with no credit pay 65 percent more on average for car insurance than people with excellent credit. Drivers with no credit pay at least twice as much in Pennsylvania, New Jersey and Michigan.
Farmers Insurance seems most reliant on credit data, with credit newcomers paying over twice as much as excellent-credit customers. Even Geico (least reliant) has a 40 percent penalty.
The five major auto insurance companies use credit data in 90% of the states in which they operate, on average. Only Progressive uses credit data in all of the states it serves.
Most used car shoppers search for their next vehicle within their local area. But new research from CarGurus shows that for adventurous deal-seekers, there are opportunities to save significantly by planning a "Fly to Buy" car shopping getaway.
Company analysts say that prices on comparable used cars can vary significantly city to city so it's possible to fly to another city to buy a used car at a much lower price, drive it home, and still save substantially after travel costs.
For example, data shows that a car shopper living in Albany, N.Y., could save more than $2,000 on a 2015 Ford Mustang if they "Fly to Buy" in Miami versus buying the comparable car in their home town – including the cost to fly to Miami and the cost of gas for the car ride home. A shopper living in Albuquerque, N.M., can save almost $1,900 on a 2007 BMW 3 Series by flying to buy the car in Dallas – again, flight and gas costs included.
To find the optimal Fly to Buy cars and destinations, CarGurus analysts studied millions of car listings nationwide, comparing local market prices on comparable vehicles to identify the most significant regional price differences. They also factored the average cost of both a plane ticket and the gasoline needed for the ride home.
Jumpstart Automotive Media released its seventh annual Insights Book.
This yearlong analysis looks at shopping patterns across Jumpstart’s portfolio of automotive websites that represent more than 25 million in-market shoppers.
About 60 percent of shoppers who enter Jumpstart’s portfolio through the homepage end up viewing a vehicle detail page (VDP) within the first three clicks (interactions).
Among visitors who enter Jumpstart’s sites directly on listings pages, nearly 50 percent return to the homepage to reset their search criteria before moving to a VDP to conduct more research.
Vehicle rankings often drive shoppers to a VDP (64 percent) to allow for more comprehensive research, and then on to photo galleries to validate the vehicle they’re focused on.
Advancements such as connectivity, big data, autonomous vehicles and artificial intelligence are driving new economic models for automakers, and most see tremendous revenue potential and consumer value in leveraging driver and vehicle data to offer mobility services, according to the 2017 KPMG Global Automotive Executive Study.
The KPMG research, which polled nearly 1,000 executives with the world’s leading automotive companies, found that 76 percent say one connected car generates more revenue streams than 10 conventional cars. In fact, expectations for data-driven revenue are so great that 71 percent say measuring OEM market share based on units sold is outdated.
“The game has changed for automakers, as cars have evolved into rolling computers and consumers have been quick to embrace autonomy, connectivity and mobility-on-demand,” said Gary Silberg, KPMG’s automotive sector leader. “A car is no longer defined by its utility, it is defined by the experience it provides to the driver and passenger – and that opens a tremendous pipeline for new revenue streams and business services that KPMG projects could top $1 trillion in the next decade or so.”
Eighty percent of executives in the KPMG study agree that data will be the fuel for future business models, and 83 percent believe they will make money off of that data. In order to create value and consequently monetize data, 82 percent of the executives agree that a car needs its very own ecosystem/operating system (OS) as otherwise the valuable consumer and/or vehicle data will be most likely routed through third parties. In this case many valuable revenue streams would be lost.
In conjunction with the executive survey, KPMG surveyed 2,400 consumers from 42 countries, to compare their perspective against the opinion of the world’s leading auto executives. KPMG found that consumers agree. Sixty percent of consumers say that as we move toward autonomous driving, they’ll only care about what they can do with the time they’re in the car, rather than the attributes of the car. However, both executives and consumers agree that data security and privacy is the top purchasing criteria in the self-driving age where passengers are interacting with the car’s digital platform.
Executives and consumers don’t see eye-to-eye regarding who should own that consumer and vehicle data. Auto execs are split between thinking OEMs (31 percent) and consumers (27 percent) should own the data, while consumers overwhelmingly believe only they should own it.
Toyota and Chevy are leading in truck loyalty purchases, according to a new analysis released by Edmunds.com.Truck loyalty – which is defined as the rate of truck trade-ins that went toward the purchase of another truck – was at 74 percent through the first nine months of 2016. By comparison, the next highest loyalty rates were vans at 52 percent and compact SUVs at 47.3 percent.About 70 percent of Toyota owners who have traded in their pickups for another truck this year opted for yet another Toyota. The rate squeaks past loyalty rates for Chevy truck owners (69.5 percent) and Ram owners (68.1 percent). Toyota’s strong loyalty is primarily attributed to its popular Tacoma.Trucks have accounted for 15.1 percent of all new sales this year through September, the highest share since 2007 (17 percent). The current loyalty to trucks is especially surprising given that their average transaction price ($43,277 in 2016) has climbed a remarkable 46 percent since 2006. By comparison, industry-wide average transaction prices ($33,728 in 2016) are up just 23 percent over the same period.