TransUnion Reports Surge in Auto and Home Insurance Shopping in Q2 2025
TransUnion's Q2 2025 Insurance Personal Lines Trends and Perspectives Report reveals a notable increase in insurance shopping activities in the U.S. market. Auto insurance shopping surged by 18% compared to Q2 2024, while home insurance shopping increased by 9% year over year. The rise in auto insurance shopping activity peaked in March 2025 and remained steady through May, potentially tapering off as consumers finalize lower premium deals.
Rising property insurance costs are driving consumers to seek more competitive auto insurance rates, often leveraging bundled policies to maximize savings. Importantly, 42% of auto insurance shoppers reported switching insurers within the past 18 months, highlighting increased consumer mobility. A significant portion of these switchers are long-term customers, particularly among Gen X and Baby Boomer demographics.
The report underscores the importance for insurers to innovate retention strategies and adopt data-driven, personalized marketing tactics. By anticipating customer life events such as relocation, marriage, or vehicle purchases, carriers can engage consumers at critical decision points. Additionally, monitoring competitive insurance quotes and loan shopping behavior can enhance customer interaction strategies.
Marketing spend within the insurance sector grew by 23% year over year, with a notable focus on direct mail channels. Branding efforts are increasingly emphasizing specialty insurance lines including motorcycle, pet, identity theft protection, and recreational vehicles to differentiate services.
A key insight from TransUnion's analysis is the critical role of clean, accurate consumer data to support efficient marketing. A case study demonstrated that cleaning data for just two variables—phone number and email—across 2.4 million individuals saved an estimated $1 million annually on direct mail and generated nearly $5 million additional revenue.
Further, refined audience segmentation using multiple consumer characteristics can enhance marketing returns significantly, increasing return on ad spend by up to 3.6 times compared to broader targeting. However, more precise segmentation carries both greater potential risks and rewards.
Overall, the report recommends that insurers leverage clean data and sophisticated audience targeting techniques to present consumers with insurance products aligned to their current life stages, thus improving retention and acquisition outcomes.
TransUnion's report excludes data from certain states (California, Hawaii for auto; Massachusetts for auto; Maryland for property) due to regulatory restrictions on credit-based insurance scoring. The research is based primarily on internal data from January 2024 through June 2025.
TransUnion positions itself as a global information services company, offering innovative credit, marketing, fraud, risk, and analytics solutions to support both consumers and businesses in reliable marketplace transactions.
The insights from this report provide insurance companies with actionable intelligence to refine marketing spend, improve customer targeting, and adapt to evolving consumer behaviors in personal lines insurance.