Record High U.S. Drivers Shop for Car Insurance Amid Elevated Rates & Bundling Discounts

The 2025 J.D. Power U.S. Insurance Shopping Study reveals a record 57% of motorists actively shopping for new car insurance at the end of 2024, up from 49% in 2023. This marks the highest rate in the study’s 19-year history. Despite a slight cooling from earlier 2024’s record premiums, auto insurance rates remain 11.3% higher than December 2023 and 64% higher than December 2021, driven by inflation, increased serious collisions, complex vehicle repairs, and tariffs on imported auto parts.

Another significant driver for increased insurance shopping is the bundling trend, where 33% of customers seek to combine auto and homeowners insurance to access discounts from providers like State Farm, Geico, Erie, and Allstate, which offer up to 25% savings for bundled policies, with some providers like Amica offering up to 30% for multi-policy bundles including umbrella and life insurance. Homeowners insurance premiums have also surged, rising from $2,656 in 2021 to over $3,300 in 2024, influenced by severe weather events, regulatory challenges, and increasing labor and material costs, impacting states like Utah and Illinois with large premium jumps of 59% and 50%, respectively.

Erie, Auto Club Group, and State Farm rank highest in customer satisfaction according to the J.D. Power survey, which also emphasizes the importance of comparing multiple quotes from different insurers to optimize coverage and cost. Insurers continue to promote bundling as a strategy to retain customers, yet consumers are advised to compare separate policies as sometimes distinct providers may offer better overall pricing despite the lack of bundling discounts.

The study and trends underscore critical shifts in consumer behavior and pricing strategies in the U.S. auto and homeowners insurance markets, reflecting broader economic and regulatory pressures.