ST. PAUL, Minn.—Credit union members are more likely than non-credit union members to have ancillary insurance protections—roadside assistance, vehicle and property protection, extended warranties, etc.—for their high-value purchases, according to a new study.
Securian Financial, a provider of insurance and other protection products to credit unions, surveyed just over 1,000 consumers, of which 59% (616) were credit union members and 41% (420) were not.
On all 15 ancillary insurance protections asked about in the survey, more credit union members than non-credit union members said they owned the coverage—with vehicle-related protections the most commonly owned by both consumer segments, followed by protections for personal property, the company reported.
“Our study found that consumers prioritize protections for expensive items like their vehicles, cell phones and big-ticket household goods because they fear the potential financial loss of costly repairs,” said Matt Bauler, Securian Financial vice president of Affinity Solutions. “Perhaps not surprisingly, due to the strong relationships credit unions have with their members, our study found credit union members are more likely than non-credit union members—often much more likely—to own insurance and related products that financially protect their purchases.”
Top 5 Most-Owned Ancillary Insurance Protections
#1 Roadside assistance
- All respondents: 53%
- Credit union members: 60%
- Non-credit union members: 41%
#2 Vehicle protection1
- All respondents: 43%
- Credit union members: 51%
- Non-credit union members: 30%
#3 Accident insurance2
- All respondents: 41%
- Credit union members: 48%
- Non-credit union members: 31%
#4 Cell phone insurance
- All respondents: 40%
- Credit union members: 43%
- Non-credit union members: 34%
#5 Property protection3
- All respondents: 38%
- Credit union members: 47%
- Non-credit union members: 25%
Role These Protections Play With Financial Wellness And In A Tough Economy
Consumers associate financial wellness with stability and lack of worry when it comes to money—and many view insurance protections as key to achieving it. Nearly two-thirds (63%) of survey respondents said they typically protect large purchases with insurance or warranties. Again, more credit union members (69%) said this than non-credit union members (56%), Securian said.
“But, while consumers may see how ancillary protections support their financial wellness, the current economic climate limits their ability to protect everything in their lives that they would like to cover. More than half (51%) of non-credit unions members and 43% of credit union members said in the survey that insurance protections are not a priority for them right now due to the economic climate squeezing their finances,” Securian explained.
Younger Generations Most Interested
Still, according to the survey, there is interest in learning more about ancillary insurance protections, especially among younger credit union members. More than half of Generation Z and Millennial credit union members surveyed said they were very or extremely interested in several ancillary insurance protection products mentioned in the study. Vehicle protection scored particularly high, with 71% of Generation Z and 64% of Millennial credit unions members saying they were very or extremely interested in learning more about the product.
The most desired insurance protections Millennial survey respondents said they don’t have but wish they did are identity theft protection, term life insurance and accident insurance. For Generation Z, cell phone insurance, vehicle protection and identity theft protection are the top three most desired protections they currently are without, Securian said.
“Even in this tough economic environment, our study shows credit unions can grow their ancillary insurance revenue by meeting the needs of their younger members who want to better protect their financial security,” said Bauler. “Credit unions should emphasize the peace of mind these products may offer and use real-life member stories when communicating about the protections with their younger members.”