Auto insurance shopping down, switching up in Q2
JD Power reports that the Q2 auto insurance shopping rate was down, but the switching rate was up.
According to the latest Quarterly Insurance Signals Intelligence Report, formerly known as the Loyalty Indicator & Shopping Trends (LIST) Report, JD Power and TransUnion found that the overall shopping rate was 12.6%, down by 1 point quarter-over-quarter and by 0.4 points year-over-year.
The switching rate was 4.5%, up 0.3 points quarter-over-quarter and 0.3 points year-over-year.
J.D. Power and TransUnion found that auto insurance shopping began to cool considerably in April, spiked in May, and then reduced again in June. Meanwhile, switching has been up, peaking in May before dropping slightly in June.
Among shoppers who switched auto insurance policies, the median premium amount moving carriers is more than $3,200, according to the report.
The report notes that the data suggest the market for auto and property insurance may be moving beyond peak intensity.
“While insurance shopping remains elevated across auto and property, growth has begun to level off and shopper behavior [is] converging across credit tiers, suggesting the market may be moving beyond peak shopping intensity,” the report states. “Consumers with greater financial flexibility continue to actively shop for better value rather than simply accept higher premiums. Financially constrained consumers, particularly younger drivers, appear more likely to reduce or lapse coverage altogether. As shopping activity tightens, retention risk is evolving from a primarily price-driven switching issue to a broader challenge centered on affordability and coverage persistence.”
The report also highlights which insurance companies are losing policies and those that are gaining them. It states that “State Farm won the quote and acquisition battle this quarter among auto and home bundlers.”
The top five higher loyalty carriers for Q2 were:
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- North Carolina Farm Bureau
- Tennessee Farm Bureau
- Kentucky Farm Bureau
- Erie
- USAA
The lower loyalty carriers were:
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- Direct Auto
- Root
- Alfa
- The General
- National General
The report states that the “Loyalty Tracker” is based on carriers with more than 200 responses in a quarter.
Earlier this year, S&P Global Market reported that State Farm had lost its position as the No. 1 auto insurer on a 12-month basis for the first time since World War II.
Progressive wrote more private direct premiums in the trailing 12 months ending March 31 than any other auto insurer, S&P said.
It wrote more than State Farm by over $1.57 billion, based on S&P’s analysis of disclosures in Q1 2026 statutory financial statements and select, limited proprietary estimates.
The report also includes a sneak peek at the new JD Power AI Insurance Experience Study, which shows that two-thirds of consumers use AI as part of their process in researching insurance coverage. It states that while few follow the guidance exactly, more than one-third made a policy change based on the advice received. The full study will launch on Aug. 25.
To conduct the study, JD Power says it measured how consumers use and perceive AI across the insurance value chain by researching coverage, quotes, claims, and general policy servicing. Early data on consumers who used AI to research insurance products and coverage shows nearly equal usage of insurer tools and third-party tools such as ChatGPT, Copilot, and Gemini, according to J.D. Power.
According to LexisNexis Risk Solutions’ 2026 Auto Insurance Trends Report, overall traffic violations in the U.S. have returned to pre-COVID levels.
“Total volumes show double-digit growth, up 13% compared to 2022,” the report states. “At the same time, miles driven have increased by only 2%, indicating that changes in driver behavior — and not miles driven — are responsible for the increase in violations.”
Distracted driving violations increased 57% across all ages compared to 2022, with increases of 70% or more among drivers aged 36-45 and 66-plus, according to the report.
It also found that the cost of owning a vehicle has skyrocketed over the past few years due to high loan amounts, extended loan durations, and rising gas prices for both used and new car owners.
“Since 2021, U.S. consumers have experienced four years of sustained auto insurance rate increases,” the report states. “In response, many became more cost-conscious and adjusted coverage to manage premiums. For example, the share of policies with a $1,000 or higher deductible increased from 23% in 2022 to 33% in 2025.
“Consumers began to see relief in Q4 2025 when the average premium rate at renewal declined for the first time since 2021. However, consumers remain price sensitive, and insurance costs are playing a more prominent role in vehicle purchase decisions.”
As for auto insurance shopping, the report states that, as of Q4 2025, 47.1% of in-force policies shopped at least once in the previous 12 months. Total shopping volume grew 35.7% from 2022 to 2025, and shopping and new business grew year over year throughout 2025.
U.S. auto insurance shopping and new business growth shifted from “hot” to “warm” in Q1 2026, according to the U.S. Insurance Demand Meter for Q1 from LexisNexis Risk Solutions.
Year-over-year shopping growth decreased to 3.2%, turning negative in March, down from an increase of 6.9% in Q4 2025.
New policy growth dropped to 3.6%, and shopping remained significantly elevated relative to historic levels. This was down from a 7.1% increase in Q4 2025, which sat closer to levels seen in mid-2025, LexisNexis found.
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