Q2 2026 Auto Insurance Trends: Shopping & Switching Rates Analytics

The second quarter of 2026 brought a mixed bag for the auto insurance sector, as shopping activity declined but switching among consumers rose, according to the J.D. Power Signals Intelligence Report.

While fewer customers shopped around for auto insurance, those who did were more decisive about switching carriers. This shift resulted in a switching rate of 4.5%, a 0.3 percentage point increase both year over year and from the previous quarter. In contrast, the overall shopping rate decreased to 12.6%. Notably, the median premium for consumers who switched insurers surpassed $3,200, demonstrating that shoppers were searching for both value and specific benefits tailored to their needs.

Trending Dynamics Across Insurance Types

The quarter also revealed contrasting trends in home and renters insurance. Home insurance shopping rose to 7.1%, a year-over-year increase, yet dipped slightly from Q1. Meanwhile, the switching rate for home insurance held steady at 2.5% compared to the previous year but saw a slight quarterly increase. Renters insurance experienced a lull in shopping activity during April and May, followed by a drop in June. However, switching rates for renters rose consistently from February, indicating that policyholders were making conscientious decisions after assessing their options.

Factors Driving Consumer Behavior

Affordability continues to play a key role in how consumers approach their insurance needs. Insights from TransUnion point out that financially stable consumers focused on gaining value, while younger drivers and those with limited financial flexibility opted for reduced coverage levels or even allowed their policies to lapse. The report underscores the importance for insurers to cater offerings to diverse economic demographics to retain and attract clients.

Impact of Artificial Intelligence in Insurance Decisions

J.D. Power's AI Insurance Experience Study revealed intriguing insights into how artificial intelligence tools are influencing consumer decisions. Among those using AI for research, 19% followed the recommendations fully, while 49% partially adhered to them. Despite some skepticism, as 6% disregarded AI advice, a significant 37% modified their policies based on AI insights. This data underscores the growing role that technology plays in shaping the insurance landscape, encouraging carriers to integrate AI tools to enhance customer loyalty and satisfaction.

Shopping and Switching Rates

What Industry Professionals Should Look Out For

The shifting trends indicate areas of opportunity and risk for insurance professionals. Agencies and carriers should consider enhancing their digital tools and leveraging AI-driven insights to meet consumer expectations. Moreover, understanding the nuanced needs across different consumer segments—especially those impacted by economic constraints—may help in designing targeted solutions that attract and retain policyholders. As technology and consumer preferences evolve, staying agile and responsive to these changes is crucial for long-term success in the insurance industry.