LexisNexis Reports Strong Auto Insurance Shopping and Rate Trends in Q2 2025
LexisNexis Risk Solutions reported robust activity in the U.S. auto insurance market during the second quarter of 2025, highlighting a 9.4% year-over-year increase in policy shopping and a 3.6% growth in new auto insurance policies. The Insurance Demand Meter recorded a record 46.5% of policies-in-force being shopped within the past 12 months, indicating heightened consumer engagement and market fluidity.
Geographically, New Jersey led shopping increases with a 33% rise, followed by Texas (17%), California (16%), and Florida (9%). These states accounted for the majority of shopping volume growth, reflecting their substantial insured populations and market significance. Among the top 25 auto insurers, 40% of rate filings in Q2 were reductions, averaging a 4% decrease, contributing to increased new business and consumer switching activity.
Direct distribution channels showed standout growth with a 22.8% year-over-year rise in shopping activity, maintaining an eight-quarter streak of expansion. This growth suggests insurer efforts to reactivate marketing campaigns and extend risk appetites are influencing consumer behavior positively.
Analysis revealed that single-driver policies and those with fewer vehicles exhibited the highest shopping rates, supported by a 9% increase in insurance shopping tied to new vehicle purchases since January 2022. Conversely, multi-vehicle households demonstrated lower shopping growth, indicating potential shifts toward affordability and streamlined coverage needs.
The data emphasizes an increasingly price-sensitive consumer base spurred by rate reductions and targeted insurer outreach, such as renewal notifications and marketing activations. Existing policyholders showed a stronger propensity to shop than the uninsured segment, signifying dynamic competitive pressures within the renewal market.
Rate reductions, averaging -4%, were a notable market dynamic amid a backdrop where some states still reflect rate increases averaging +4.4%. This variation points to regional market divergence and potential regulatory impacts influencing insurer pricing strategies.
LexisNexis underscores the importance of retention strategies for insurers in this environment of heightened shopping and switching behavior. Tailoring engagement to address individual drivers and smaller households is pivotal as these segments significantly contribute to market activity and profitability outcomes.
Looking forward, analysts note that trade policies and tariff changes influencing vehicle purchases could affect insurance shopping trends. The potential counterbalance of rate decreases by new trade agreements may recalibrate market expectations and drive renewed activity later in the year.
The Insurance Demand Meter, analyzing nearly 90% of U.S. insurance shopping transactions since 2009, remains a key market intelligence tool, providing valuable insights for insurers navigating evolving consumer behaviors and competitive landscapes.
LexisNexis Risk Solutions continues to leverage data analytics to support insurer decision-making amid shifting market conditions, reinforcing its strategic role in the U.S. auto insurance ecosystem.