Auto industry outlook: trends and insights that matter today

Car prices hit an all-time high this year, with the average price of a new vehicle landing at $47,000, “its highest record yet,” according to Entrepreneur. With advancements in 3D printing, sales shifting to a totally online model, and autonomous and electric vehicle adoption on the rise (not to mention smart and connected cars as well), experts anticipate a full-on revolution within the auto industry by 2030. But what will things look like until then? Consider this:

New buyer habits and continued supply shortages

With the start of the pandemic came dwindling demand for the auto industry, which meant car manufacturers stopped ordering semiconductor chips and producers stopped making them, focusing on smartphone and cloud computing chips instead. But now, when the industry was expected to have already made its comeback, production is still at a halt across the board. Ford temporarily closed eight of its plants earlier this year due to the shortage, for instance, and other manufacturers have followed suit as well.

As a result, cars are scarce, people are paying record-high prices and, more than ever, they’re carrying out their customer journeys completely online. Over a year before COVID-19 even hit the United States, Tesla had already closed all their stores and shifted sales to a digital model — preferred by customers and beneficial for dealers as well, thanks to better buying efficiency.

The VIU Perspective

Getting a car has never been more expensive, and with so many frustrations arising on the path to ownership these days, it’s up to us to make what we can of the process as smooth and simple as possible.

Purchasing conditions are pushing 72% of vehicle buyers to consider the cost of insurance before purchase as part of their total evaluation. As they seek affordability, consider partners who can offer broad insurance carrier choice to ensure customers have the best coverage at the right cost. Partners benefit from brokers like VIU by HUB by leveraging an array of carriers, relationships and expertise to deliver an exceptional omnichannel experience while driving new sources of adjacent revenue.

Risky driver behavior and insurance uncertainty

“Changes in driving behavior – including riskier driving behaviors such as distracted driving – created a notable shift in the driving violation data mix reported,” last year, according to LexisNexis. And “an abnormal rise in major speeding violations coincided with another yearly increase in traffic fatalities.” And with “continued risky driving behaviors [that] suggest claims severity will remain high,” understanding complicated coverage options is more important than ever.

The VIU Perspective

In short, today’s drivers have more than their fair share to worry about. Show your customers you care by helping make sure they’re properly insured and protected against all kinds of risks on the road. With VIU by HUB’s trusted expert advisors, your customers will stay fully insured today, tomorrow and beyond with proactive guidance and transparent options for auto insurance and other personal policies, all in one easy-to-use digital space.

Looking for an insurance partner that can help deliver timely solutions to customer challenges? Let’s find a time to talk!