Auto Insurance Switching Rises as Q3 Shopping Holds at 13.2%

Auto insurers are facing more switching even as the share of customers shopping for coverage has stopped growing year over year. The Q3 Quarterly Insurance Signals Intelligence Report from JD Power and TransUnion puts shopping at 13.2% and switching at 5.1%. Both measures rose 0.6 percentage points from Q2, but the longer-term pattern is more revealing: shopping has flattened while switching has kept climbing.

That split suggests that a stable pool of shoppers can still create greater retention pressure. Customers who compare policies may be more willing to move when they find an option that better fits their price or coverage expectations. In Q3, the median premium amount among customers who switched carriers was more than $3,300, according to the report.

Shopping picked up through the quarter

After shopping cooled in Q2, rates rose from July and stayed elevated through the end of Q3. Switching reached a record 5.3% in August, then eased to 5.0%—the same level recorded in July. The report’s headline Q3 switching rate was 5.1%.

The quarter’s figures point to active comparison, but the report describes a market that is becoming more normalized. Auto shopping has slowed considerably from the elevated levels seen during 2024 and 2025. At the same time, the report says consumers are finding fewer chances to make meaningful savings by changing carriers as rate actions moderate and premium increases stabilize.

That may change the reason customers shop without making them less attentive to price. When the savings from a move are less clear, shoppers may weigh perceived value and policy features alongside the quoted premium. The report does not say how much any one factor contributes to switching, but its figures show that carrier movement can rise even without year-over-year growth in shopping.

Loyalty varies by insurer

JD Power’s Auto Loyalty Tracker identifies NJM, Erie, USAA, Country Financial and Mercury as carriers with higher customer loyalty. Nationwide, Alfa, Direct Auto, Root and National General had lower loyalty. The report does not provide loyalty percentages in the source material, so these rankings indicate relative differences without showing their size.

For drivers comparing coverage, the findings make clear that loyalty and shopping can coexist: customers may remain with a carrier at renewal, yet still be open to evaluating alternatives. The report also covers shopping and switching in home and renters insurance, though the available details do not include figures for those lines.

Survey points to price and ease of comparison

Separate research from LexisNexis Risk Solutions adds context on why customers consider a move. Its whitepaper says 72% of consumers who shopped for auto insurance were open to switching carriers. Within that group, 17% said they were definitely seeking a new company. The shopping experience was easier than expected or met expectations for 87% of respondents.

Those responses suggest that comparing options may feel manageable to many shoppers, while interest in switching remains broader than firm intent to leave. LexisNexis Risk Solutions senior vice president and general manager for auto and home Jeff Batiste said consumers increasingly treat insurance as an ongoing value comparison rather than a decision made only at renewal. He said price and perceived value help determine whether shoppers stay or leave, and described shopping behavior as an early signal of competitive pressure and retention risk.

The research also reports that consumers are cost-conscious and willing to compare policy options, and that price often outweighs loyalty in decisions to switch or stay. Bundled policies show higher retention, but bundling alone may not prevent customers from evaluating alternatives. The findings also link insurance affordability to vehicle purchase decisions and say auto and insurance-related events have more effect on shopping than life events.

LexisNexis Risk Solutions says broad rate increases aimed at restoring profitability helped establish a comparison-shopping habit that has persisted as some rate decreases take effect. Its findings describe price as a factor beyond the initial switch: cost continues to matter after a customer has selected a new carrier.

More tools could lower the effort to shop

The JD Power and TransUnion report raises the possibility that AI agents, including Meta Muse, could increase shopping and switching by making it easier for consumers to find rates. It presents that as a potential influence; the available information does not quantify its effect. If comparison tools reduce the time and effort involved, more shoppers may be able to check alternatives, while the gap between considering a switch and completing one will still depend on the value they see.

A separate LendingTree survey points to another ownership concern: half of Americans with auto or home insurance had avoided filing a claim, largely because they feared their premiums would rise. Nearly three-quarters of those who avoided a claim—73%—said their most recent situation involved car insurance. The result reflects consumer concern about the possible cost of using coverage; it does not establish what happened to premiums for those individuals.

Previous Quarterly Insurance Signals Intelligence reports are available here. For insurers and policyholders alike, the Q3 figures suggest that retention depends on more than the number of people shopping: a relatively steady shopping rate can still accompany rising switching, with price and perceived value central to the comparison.

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