U.S. consumer activity in auto insurance shopping remained positive in the second quarter of 2025, according to the latest U.S. Insurance Demand Meter from LexisNexis Risk Solutions.
The quarterly report tracks shopping volume, frequency, new business activity, and related trends. In Q2, shopping rates were classified as “hot,” rising 9.4% year-over-year (YoY). New policy growth reached 3.6% YoY, earning a “warm” rating on the meter. By the end of the quarter, 46.5% of policies-in-force had been shopped at least once in the past year—the highest rate since the meter’s launch in 2020.
“Policyholders, often those with the highest lifetime value, will help determine growth and profitability for the industry,” said Jeff Batiste, Senior VP and GM of U.S. Auto and Home Insurance at LexisNexis. He noted that insurers should focus on retention and engagement strategies, especially for active consumers with smaller households or fewer vehicles.
Nearly 40% of rate filings among the top 25 auto insurers included rate reductions during the quarter, sustaining new business activity and prompting more consumers to shop and switch providers. The average rate decrease was 4%, while the average increase was 4.4%, reflecting slower approvals of rate hikes in certain states.
The number of consumers shopping for auto insurance while buying a new vehicle has grown 9% since January 2022, indicating that buyers are increasingly factoring insurance costs into their overall purchase decisions.
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