Auto, home, and renters’ insurance shopping declined in the second quarter of 2025, according to the latest Insurance Loyalty Indicator and Shopping Trends (LIST) report from J.D. Power.
However, policy switching either remained flat or increased across all three segments, suggesting changing consumer behavior in a stabilizing rate environment.
Auto insurance shopping fell to 13.0%, down 1.1 percentage points (pp) quarter-over-quarter and 0.3 pp year-over-year. Despite the decline, switching rose to 4.2%, an increase of 0.1 pp from Q1 and 0.3 pp from the same period last year. This matches the all-time high switching rate recorded in late 2024. Among those who changed auto insurers, the average premium transferred was $4,751.
Home insurance followed a similar trend. Shopping decreased slightly to 6.5%, down 0.1 pp quarter-over-quarter and 0.3 pp year-over-year. The switching rate held steady at 2.5% from Q1 but rose 0.3 pp compared to Q2 2024.
In renters’ insurance, the shopping rate dropped to 5.9%, down 0.3 pp from the previous quarter and 0.1 pp year-over-year. However, the switching rate rose to 4.3%, increasing 0.5 pp quarter-over-quarter and 0.6 pp year-over-year.
The report noted that shopping activity had surged throughout 2024, making the Q2 slowdown indicative of a broader cooling across the personal lines market. Nevertheless, consumers in higher-risk segments, including those with lower credit-based insurance scores, continued to shop more actively.
In auto insurance, this trend was most visible in the Northeast, where prior year rate hikes were pronounced.
Bundled customers also emerged as a focal group. The data showed that bundlers were shopping and switching at higher rates compared to non-bundled customers, reversing earlier stability in this demographic. J.D. Power attributed this trend to ongoing increases in homeowners’ insurance premiums and the accessibility of digital shopping tools.
The report also identified carriers with the highest and lowest customer loyalty. For auto, NJM and COUNTRY Financial topped the loyalty rankings, while National General and Root had the highest defection rates. In home insurance, COUNTRY Financial led, with ACSC showing the lowest retention. For renters, ACSC ranked highest in loyalty, and Nationwide had the most customer losses.
What do you think is driving the shift in switching behavior despite reduced shopping activity? Share your thoughts in the comments.
