Consumer Behavior Shifts in Home and Auto Insurance Shopping
Consumer interest in home and auto insurance has demonstrated a year-round pattern, deviating from traditional seasonal trends. The sustained increase in insurance shopping activity observed in 2024 and early 2025 persisted into the latter months, raising questions about whether this signifies a fundamental change in consumer behavior. This inquiry is detailed in TransUnion's Q1 2026 Insurance Personal Lines Trends and Perspectives report.
Auto insurance shopping experienced a 10.6% year-over-year rise, while property insurance saw a 5.3% increase. Fourth-quarter data surpassed typical year-end levels, suggesting a significant shift in consumer behavior amidst diminishing growth rates previously seen in 2025.
Several factors have contributed to this change, including widespread use of mobile technology for streamlined online insurance shopping, increased advertising by insurers, and a consumer base vigilant about managing household expenses amid rising insurance rates.
Throughout 2025, the volume of auto insurance shopping continued to surpass previous year figures, with a notable 10.6% increase in the fourth quarter. TransUnion's analysis indicates that approximately 77% of consumers compare quotes from only one or two insurers, facilitating quicker decision-making, while others seek better rates or coverage by comparing multiple options.
The LexisNexis® Insurance Demand Meter reports that 47.1% of auto policies were shopped at least once in the past year as of Q4 2025, showing year-over-year growth, especially among those aged 66 and older. Direct channel shopping increased by 12.6%, whereas the exclusive channel grew by 5.3%, although the independent channel saw a slight decline.
In property insurance, a 5.3% year-over-year growth was recorded during the last quarter, aided by falling mortgage rates and strong homeowner equity. This led to an 8.8% increase in mortgage originations by Q2 2025. Initial shopping activity was driven by consumers with lower credit-based insurance scores, but by year's end, interest was more balanced across various credit score segments.
As insurers navigate this evolving landscape, many have increased their marketing budgets, resulting in a 14.4% rise in P&C insurance marketing expenditure, primarily in personal lines. Additionally, several auto insurers have reduced premiums by approximately 0.2% at the close of Q3 2025 to stay competitive.
The report advises property insurers to review and potentially adjust coverage for homeowners utilizing equity for renovations or upgrades before policy renewals, ensuring coverage aligns with current needs. Further details are available in the Q2 2025 Personal Lines Trends and Perspectives Report and the LexisNexis Insurance Demand Meter.