The auto insurance market in the United States continues to experience significant activity when it comes to consumers shopping for their auto insurance policies and switching to a new insurance carrier.
The LexisNexis U.S. Insurance Demand Meter report, which analyzes billions of insurance shopping transactions, helps us understand what’s behind this trend and what it means for both insurance companies and everyday drivers.
What’s happening in the auto insurance market?
During the third quarter of 2025, quarterly U.S. auto policy shopping increased 6.4% YOY, meaning there was a 6.4% increase in policies shopped in Q3 2025 compared to Q3 2024. Similarly, new policy growth was 2.8% in Q3.
Despite the increases in both insurance shopping and switching in the third quarter, the overall growth rate has started to level off from previous quarters. This suggests that the market is still very active but not growing at the same rate as the previous year, although insurance policy shopping and switching both increased.
Who is shopping for auto insurance?
Older adults, especially those 66 and older, are shopping for auto insurance at much higher growth rates than younger cohorts.
Traditionally, older policyholders have tended to remain with their insurance companies and were less likely to switch to a new carrier. Now, however, insurance companies have seen more adults aged 66 and above enter the market.
How people shop for car insurance matters
There are different ways people can buy auto insurance:
- Direct channel: This means buying insurance directly from the insurance company, often online or over the phone.
- Exclusive channel: This involves working with agents who sell insurance for only one company.
- Independent channel: These agents can offer policies from multiple companies.
In the third quarter, insurance policies purchased directly from insurance companies saw the strongest growth at 14.1%.
In contrast, shopping via the other distribution channels grew more slowly or even slightly declined. This may mean that more people are comfortable shopping for insurance on their own, without relying on agents.
How often are people shopping for car insurance?
Shopping for auto insurance has become more of a regular activity for many Americans.
For eight quarters in a row, nearly half of all auto insurance policies have been shopped at least once in the previous 12 months.
This means that people are increasingly willing to compare options and switch providers if they find a better deal.
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What’s happening across the U.S.?
State-by-state differences
Shopping activity isn’t the same everywhere. In the third quarter, 15 states and the District of Columbia saw higher shopping growth rates than in the previous quarter.
States like New Jersey, California and Texas had especially high growth rate increases, which helped boost the overall national numbers.
Third-quarter insurance rate adjustments
Insurance companies regularly adjust rates, and these changes can influence shopping behavior.
In the third quarter, about one-third of the rate changes among the top 25 insurance companies were rate decreases.
Another third were increases, and the rest were rate neutral. Overall, the average impact of these changes amounted to a slight decrease in the rate, -0.2% among the top 25 carriers.
When rates go down, it can motivate more people to shop for new policies in hopes of saving money. When rates go up, people may shop around to avoid paying more.
What’s driving the car insurance shopping trends?
Several factors are encouraging people to shop for auto insurance:
- Higher rates: When insurance premiums rise, some people look for better deals.
- Higher marketing spend: Insurance companies are advertising more, raising consumer awareness of their options.
- New shoppers: Groups who haven’t shopped in years, like older adults, are becoming more active in the market.
- Loyal customers are looking elsewhere: Even people who have stayed with the same insurer for years are shopping around.
What does this mean for the future?
Traditionally, there is less insurance shopping in the last quarter of the year because of the holidays.
However, last year broke that pattern, and 2025 is already on track to surpass previous records. Activity from the fourth quarter will reveal whether this hot streak continues or if shopping activity slows down.
The Q3 2025 LexisNexis U.S. Insurance Demand Meter shows that shopping for auto insurance is now a regular part of life for many Americans. People are more willing to compare policies, switch providers and look for better deals.
Insurance companies will need to keep a closer eye on these trends to stay in line with evolving consumer sentiment.
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