US auto insurance shopping and new business growth closed out 2025 at record levels, as consumers remained highly active in the fourth quarter. That is according to the latest LexisNexis® US Insurance Demand Meter.
Quarterly year-over-year shopping growth registered a “Hot” reading of 6.9% in Q4 2025, up slightly from 6.4% in the third quarter, while new policy growth rebounded sharply to 7.1%, moving back into “Hot” territory after posting 2.8% in Q3. The final quarter reversed a year-long trend of moderating growth and capped a record-breaking year for auto policy activity.
Older consumers continued to lead the surge. Policyholders aged 66 and older recorded 11% year-over-year shopping growth in Q4, the highest among all age cohorts, extending a trend that has persisted since early 2023. The annual shop rate also climbed to a new high: 47.1% of policies in force had been shopped at least once in the previous 12 months, up 1.9 percentage points from Q4 2024 and 5.9 points from Q4 2023.
Channel performance showed a mixed picture. The direct channel again led with 12.6% growth, though slightly below Q3 levels. For the first time in 2025, the exclusive agent channel returned to positive territory, rising 5.3%, while the independent channel dipped to -0.1%, its first negative reading since early 2024.
Rate activity also played a role. According to the report, 50% of Q4 rate filings were decreases, resulting in an overall industry rate impact of -0.5%. Among the top 25 carriers, the net rate impact was -0.7%.
An internal study likewise found that previously inactive policyholders who began shopping were twice as likely to shop again within six months, particularly among older and long-tenured customers.
As Jeff Batiste, senior vice president and general manager of US auto and home insurance, noted, the market is operating “outside of a traditional insurance cycle,” with elevated shopping persisting even as rate increases give way to broader decreases
Looking ahead, the industry will be watching whether declining rates temper consumer shopping behavior in 2026 or further entrench more frequent switching patterns.
Key findings from the LexisNexis® US Insurance Demand Meter – Q4 2025:
|
Category |
Q4 2025 Finding |
Trend / Insight |
|---|---|---|
|
Shopping Growth (YoY) |
+6.9% (“Hot”) |
Increased from 6.4% in Q3; sustained elevated consumer activity |
|
New Policy Growth (YoY) |
+7.1% (“Hot”) |
Rebounded from 2.8% (“Warm”) in Q3 |
|
Annual Shop Rate |
47.1% of policies-in-force shopped in past 12 months |
All-time high; +1.9 pts vs. Q4 2024; +5.9 pts vs. Q4 2023 |
|
Fastest Growing Age Group |
66+ cohort: +11% shopping growth |
Outpaced all other age groups for 12 consecutive quarters |
|
Direct Channel Growth |
+12.6% |
Still leading distribution; slight moderation from 14.1% in Q3 |
|
Exclusive Agent Channel |
+5.3% |
First positive growth reading in 2025 |
|
Independent Agent Channel |
-0.1% |
First negative growth since Q1 2024 |
|
Rate Filing Mix (Industry) |
50% decreases; 25% increases; 25% neutral |
Net overall industry rate impact: -0.5% |
|
Top 25 Carrier Rate Impact |
41% decreases; 35% increases; 23% neutral |
Net rate impact: -0.7% |
|
Repeat Shopping Behavior |
Previously inactive shoppers were 2x more likely to shop again within 6 months |
Older and long-tenured policyholders overrepresented among repeat shoppers |
|
Long-Tenured Policyholders (10+ years) |
29% of “Once-Sidelined Shoppers” vs. 19% overall shoppers |
Loyalty erosion accelerating |
