Auto Insurance Shopping declined in the second quarter as fewer U.S. consumers requested new quotes, but the number of drivers actually switching insurers increased. The trend highlights a changing car insurance market as consumers remain focused on premiums, coverage, and value while insurers compete to retain policyholders.

The U.S. auto insurance market is showing a notable change in consumer behavior: fewer drivers are actively shopping for new policies, but more of those who do shop are ultimately switching insurers.

According to J.D. Power’s second-quarter 2025 insurance shopping data, auto insurance shopping fell to 13% of consumers, down 1.1 percentage points from the previous quarter and 0.3 percentage points from a year earlier. At the same time, the switching rate increased to 4.2%, reaching a level that was among the highest recorded in the survey.

The combination creates an important signal for the insurance industry.

The latest Auto Insurance Shopping trend suggests that consumers may be making fewer comparisons overall, but those who decide to look for alternatives may be more determined to change carriers.

That could make customer retention increasingly important for insurers.

For drivers, price remains a major consideration.

Auto insurance premiums have experienced significant increases in recent years, encouraging consumers to reconsider their coverage and compare competing offers.

Even as pricing conditions begin to stabilize in some markets, drivers remain sensitive to differences between insurers.

The second-quarter data indicates that the market may be moving away from the extremely high shopping activity seen during previous periods.

Instead, consumers appear to be becoming more selective about when they search for a new policy.

The Auto Insurance Shopping slowdown does not necessarily mean drivers are becoming less concerned about insurance costs.

It may indicate that many consumers who were motivated to search have already compared available options or changed carriers.

J.D. Power reported that the average premium transferred by consumers who switched insurers was about $4,751, illustrating the significant amount of premium associated with customers moving between carriers.

That makes every switching customer valuable to insurers.

Insurance companies therefore face two competing priorities.

They must attract new customers while preventing existing policyholders from leaving.

Competitive pricing, customer service, claims experiences, digital tools, and coverage options can all influence that decision.

The Auto Insurance Shopping environment is also being shaped by changes in insurer pricing.

LexisNexis reported that auto insurance shopping remained elevated in Q2 2025, with shopping activity rising 9.4% year over year in its separate market-wide measurement. Nearly half of policies in force had been shopped at least once during the preceding year.

The different measurements highlight an important point: insurance shopping can vary depending on how researchers define and measure consumer activity.

J.D. Power’s survey-based shopping measure showed a quarterly decline, while LexisNexis tracked continued year-over-year growth in shopping transactions.

Both datasets nevertheless point to a highly active market in which consumers remain willing to reconsider their insurers.

For drivers, this can create opportunities.

A consumer who has experienced a substantial premium increase may find that another insurer offers a different price for similar coverage.

However, comparing premiums alone can be misleading.

Drivers should examine deductibles, liability limits, comprehensive and collision coverage, uninsured-motorist protection, discounts, and other policy terms before switching.

The cheapest quote is not necessarily the best policy.

The Auto Insurance Shopping trend also highlights the importance of reviewing coverage after major life changes.

Moving to another ZIP code, purchasing a different vehicle, adding a driver, changing annual mileage, or improving a credit profile where legally relevant can affect insurance pricing.

Drivers may therefore benefit from reviewing their policies periodically rather than waiting for a major premium increase.

For insurers, the second-quarter numbers provide a different lesson.

A decline in shopping does not eliminate competitive pressure.

The rise in switching indicates that customers who do shop may be more likely to follow through.

That means insurers need to understand why policyholders leave and identify opportunities to improve retention before renewal.

Digital insurance shopping is also making it easier for consumers to compare alternatives.

Online quoting tools allow drivers to request prices without visiting an insurance office or speaking with multiple agents.

That convenience can encourage faster decisions when consumers see a meaningful price difference.

As the market continues evolving, Auto Insurance Shopping will remain an important indicator of consumer sentiment and insurer competitiveness.

The second-quarter results show that shopping volume can decline even while switching becomes more common.

For drivers, the message is straightforward: insurance prices and coverage options can change, so comparing policies may still be worthwhile when premiums rise.

For insurers, retaining existing customers could become just as important as attracting new ones.

The next stages of the market will reveal whether the second-quarter slowdown represents a lasting normalization of shopping behavior or simply a temporary pause in a highly competitive auto insurance environment.

Source Angle: J.D. Power Insurance Loyalty Indicator and Shopping Trends data, supported by LexisNexis Risk Solutions analysis of U.S. auto insurance shopping activity.