Analysis of the U.S. Auto Insurance Shopping Trends for Q3 2025

Insights into Q3 2025 Auto Insurance Shopping

The automotive insurance landscape has seen continued momentum in the third quarter of 2025, as revealed by the recent report from LexisNexis Risk Solutions. With consumer shopping activity recording a 'Hot' growth rate of 6.4% year-over-year, the demand for auto insurance remains robust, albeit slightly down from the previous quarter's 9.4% surge. New policy growth also maintains a 'Warm' status with a 2.8% increase, albeit down from 3.6% in Q2.

Demographic Trends in Auto Insurance Shopping

Interestingly, the growth in shopping is predominantly driven by policyholders aged 66 and older, reflecting a significant 10% increase in engagement. This demographic outperformed their younger counterparts, showcasing a shift in the traditional shopping behaviors seen previously. The trend suggests that older consumers are becoming increasingly proactive in evaluating their insurance options, perhaps influenced by more information readily available through digital avenues.

Channel Activity

The direct channel has shown exceptional performance, registering an impressive 14.1% growth in shopping activity compared to the exclusive and independent agency channels, which saw declines. Specifically, exclusive channels dropped by 0.8%, while independent agencies reflected a modest growth of 2.8%. This shift toward direct channels highlights the necessity for traditional agencies to adapt to the current market realities where direct engagement is key to attracting and retaining customers.

Shopping Patterns Among Long-Tenured Policy Holders

The report uncovers a fascinating phenomenon regarding long-tenured policyholders. Consumers aged 66 and older, alongside non-standard and direct-channel shoppers, are driving the growth of auto policy shopping with significant engagement rates. Furthermore, it’s remarkable that 46.5% of policies in force were actively shopped within the past 12 months, mirroring the shopping rate from the prior quarter.

The Influence of Geographic Trends

On a geographical scale, Q3 recorded shopping growth in 15 states and the District of Columbia. Notably, states like New Jersey (16%), California (11%), and Texas (10%) experienced double-digit increases, contributing positively to the overall growth trajectory. A noteworthy shift occurred where one-third of all rate revisions submitted during this period were decreases, averaging around -4.2%, a stark juxtaposition to the 35% of revisions that entailed rate increases, averaging +5.1%. This balancing act between rate adjustments is vital for maintaining competitive market rates.

Evolving Consumer Behavior

LexisNexis senior vice president, Jeff Batiste, commented on the evolving landscape, stating, "The third quarter reflects an environment where traditional assumptions about loyalty and timing no longer hold. The sustained shopping activity from long-term customers presents a treasure trove of opportunities for insurers to align acquisition strategies with enhanced retention initiatives."

In line with adapting marketing strategies, insurers capitalized on targeted campaigns, the reintroduction of rate decreases, and the expiration of the electric vehicle (EV) tax credit, coaxing price-sensitive consumers into the marketplace. This proactive marketing strategy highlights the insurance sector's readiness to engage with customers at critical times, especially towards the year's end.

However, the holiday season is anticipated to introduce a slowdown in shopping activity, contrasted with the trends seen in 2024 that may have defied this norm.

As we look towards the future, industry stakeholders are encouraged to stay informed with the latest insights from the U.S. Insurance Demand Meter. LexisNexis Risk Solutions provides a comprehensive analysis of shopping volumes and consumer behavior patterns that are crucial for understanding the dynamics of the U.S. insurance market. The insights gleaned from their quarterly reports can serve as a guide for insurers to refine their strategies and better engage with consumers in this ever-evolving marketplace.

For more detailed insights and the latest data, stakeholders are encouraged to download the most recent U.S. Insurance Demand Meter report from LexisNexis Risk Solutions.