Q2 Auto Insurance Shopping Dips; Consumer Switching Increases

Auto insurance shopping activity has decreased slightly in Q2 after reaching a record high last quarter, with 13% of consumers shopping for new insurance. Despite the drop in shopping, a higher percentage of consumers switched insurance providers, with the typical premium transferring exceeding $4,700.

Major insurers like NJM and USAA reported the highest customer loyalty, whereas companies such as National General and Liberty Mutual experienced lower loyalty rates.
The report highlights a rise in shopping activity among higher-risk consumers, indicating a market shift back to traditional rate-setting models where premiums reflect risk profiles more accurately.

The Northeast region saw the highest shopping activity, driven by significant rate increases in the previous year. Additionally, there is a trend of bundled policyholders increasing their insurance shopping, likely due to ongoing homeowners insurance rate hikes, while unbundled customer switching has stabilized.