May 21 (Reuters) - The number of U.S. customers shopping

for auto insurance in the first quarter was 6% higher than a

year earlier, according to credit reporting agency TransUnion ( TRU )

, underscoring efforts to cut costs as inflation squeezes

consumer wallets.

WHY IT'S IMPORTANT

Insurance shopping refers to the practice of evaluating

different policies to seek out the one best suited to a

customer's needs.

Customers shop for insurance more actively during times of

financial strain to look for policies with cheaper premiums.

Auto insurance costs in April climbed 22.6% from a year

earlier, according to the Bureau of Labor Statistics, which is

the largest annual increase since the 1970s.

CONTEXT

The surge was driven by a jump in costs associated with

repairing increasingly complicated vehicles. Frequent vehicle

damage due to adverse weather has also prompted insurers to

charge higher premiums to account for losses incurred when they

pay out customers' claims.

KEY QUOTE

"As insurers see improved profitability, it's likely that

some will cautiously increase investments in customer

acquisition," Stothard Deal, vice president of strategic

planning for TransUnion's ( TRU ) insurance business, said.