High Auto Insurance Rates Drive Record Comparison Shopping in 2024

Recent data from LexisNexis highlights a significant rise in auto insurance shoppers nationwide due to elevated insurance rates. In 2024, over 45% of policyholders reviewed their auto insurance options at least once, marking the highest rate of comparison shopping documented. This trend is influenced by increased auto and home insurance premiums across most states, alongside intensified marketing efforts by insurance providers. Projections by Insurify forecast a 7% rise in average full-coverage car insurance costs and an 8% increase in home insurance prices by the end of 2025.

Customer retention remains a critical challenge as long-standing policyholders, typically with over five years of tenure, have shown increased propensity to shop and switch insurers, contributing significantly to new business shifts. Industry experts note that escalating premiums create a cycle of shopping, switching, and potential further rate increases, affecting insurer profitability. LexisNexis recommends insurers enhance retention strategies, particularly targeting long-term customers who are increasingly assessing market options amid rising costs.