• by Danielle Oster , February 27, 2025

For the better part of a year now, the number of U.S consumers shopping for auto insurance has been increasing at “nuclear” rates.

According to the latest “LexisNexis Risk Solutions U.S. Insurance Demand Meter,” consumer shopping grew 26% for the last quarter of 2024, and 18% more consumers shopped for policies in 2024, compared to 2023 levels.

The increased shopping didn’t consistently transfer to buying, however. According to the report, new policy growth was 17.7% for Q4 2024, not keeping pace with recent quarters. The report also notes that the number of new insurance policies issued also dropped in December of 2024.

“In the first half of 2024, when consumers shopped their policies, they were looking for opportunities for discounts and were willing to switch. At that time, insurers saw the growth of carrier switching outpacing the growth in shopping because it was easier for shoppers to find more favorable premiums,” Chris Rice, vice president of strategic business intelligence, insurance, LexisNexis Risk Solutions said in a statement. "However, that trend reversed in the latter half of 2024, with shopping growth outpacing new business, as carriers in a number of states had implemented rate increases, making it harder for consumers to find savings attractive enough to follow through and switch."

The report suggested that these shifting trends could imply a few key takeaways for marketers in the category.

For example, lower levels of purchases could  “signal an opportunity to create targeted marketing messaging for consumers confronted with the limited availability of attractive deals,” according to a report summary. The report cites marketing initiatives as “the main driver of shopping activity,” something carriers are taking note of, according to the report. Increased competition for auto insurance shoppers could also mean marketers need to find a balance between “targeting the consumers they are priced competitively to reach” with a focus on retaining existing customers, according to the summary.

"Marketing and pricing strategies will be the key differentiators as insurers work to attract new customers while retaining existing policyholders," Jeff Batiste, senior vice president and general manager, U.S. auto and home insurance, LexisNexis Risk Solutions, said in a statement.

"The start of 2025 has been marked by devastating events, from the wildfires that swept through Southern California to winter storms extending into the South, which compound the heavy losses from last year's natural disasters. While auto insurance rates have largely stabilized for now, the expectation is that insurers will continue to raise rates to respond to these catastrophes,” he added. “It will be crucial for insurers to monitor how this trend affects home insurance shopping—and, in turn, the behavior of auto shoppers who also own homes.”