Auto insurer switching up despite no change in YoY shopping

The Q3 Quarterly Insurance Signals Intelligence Report from JD Power and TransUnion shows auto insurance carrier switching increased even though year-over-year (YoY) shopping was flat.

The latest report shows shopping reached 13.2% and switching 5.1%, both up 0.6 percentage points from Q2.

“Looking at longer-term auto trends, shopping has flattened while switching has continued to increase; this could signal a potential for continued retention pressure on carriers,” the report states.

Among auto insurer switchers, the median premium amount moving carriers was more than $3,300 in Q3, according to the report.

According to the report’s Auto Loyalty Tracker, NJM, Erie, USAA, Country Financial, and Mercury had higher customer loyalty, while Nationwide, Alfa, Direct Auto, Root, and National General had lower loyalty.

“After a cool-down in shopping in Q2, shop rates rose again beginning in July and remained elevated through the end of Q3,” the report states. “Switching rose considerably, hitting a record high in August of 5.3% before falling slightly to 5.0%, equaling the prior record recorded in July.”

It adds that consumers are finding fewer opportunities for meaningful savings through switching carriers as rate actions moderate and premium increases stabilize.

“Auto shopping growth has slowed significantly from the elevated levels observed during 2024 and 2025, signaling a more normalized market environment,” the report states.

The report also highlights shopping and switching trends in home and renters insurance lines.

Lastly, it notes that AI agents like Meta Muse could drive shopping and switching higher by making it easier for consumers to find better rates.

Previous Quarterly Insurance Signals Intelligence reports are available here.

In a new whitepaper, LexisNexis Risk Solutions details survey findings on auto insurance shopping trends, stating that 72% of consumers who shopped for auto insurance are open to switching carriers.

Of the 72%, 17% said they were definitely seeking a new auto insurance company. Eighty-seven percent said the auto insurance shopping experience was easier than expected or met their expectations.

“Consumers are increasingly treating auto insurance as an ongoing value comparison, not a one-time renewal decision,” said Jeff Batiste, LexisNexis auto and home senior vice president and general manager, in a press release. “Our research shows that many auto insurance shoppers are open to switching, but price and perceived value ultimately determine whether they stay or leave. For insurance carriers, auto shopping behavior can be an early signal of competitive pressure and retention risk, and the ability to identify and act on those signals sooner can help retain profitable policyholders while uncovering opportunities to acquire new customers.”

LexisNexis says, according to its research:

• • “Consumers are cost-conscious and willing to compare policy options, and many find the shopping experience easier than expected.
  • “Price often outweighs loyalty in both switching and staying decisions.
  • “While bundled policies still exhibit higher retention, bundling alone may not protect insurance carriers from consumers evaluating options.
  • “Insurance affordability is becoming a key part of the vehicle purchase decision.
  • “Auto and insurance-related events have a much greater impact on auto insurance shopping than life events.”

“When insurers raised rates broadly to restore profitability, they triggered a comparison-shopping habit that persists even as some rate decreases are taking effect today,” LexisNexis says in the press release. “That focus on cost extends beyond the switching decision, with price continuing to outweigh loyalty even after consumers choose a new insurance carrier.”

According to recent LendingTree survey results, half of Americans with auto or home insurance have avoided filing a claim largely because they fear their premiums would go up.

Nearly three-quarters (73%) of “claim avoiders” said their most recent situation involved car insurance.

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