New consumer research finds 72% of U.S. auto insurance shoppers are open to changing insurers, and 86% of shoppers who switched insurance companies cited price as a reason
ATLANTA, Oct. 22, 2026 /PRNewswire/ — LexisNexis® Risk Solutions today announced the results of a new consumer research study examining the factors influencing elevated auto insurance shopping and switching behavior in the U.S. The survey of 3,000 U.S. auto insurance consumers found that price is the dominant factor in both switching and staying decisions, with 86% of consumers who switch auto insurance policies citing price as a reason. The findings are detailed in a new white paper, “U.S. Auto Insurance Shopping and Switching Research Report: Examining Why Consumers Shop, Stay and Switch,” which explores how price sensitivity, bundling behavior and changing shopping patterns are reshaping how auto insurance insurers attract and retain policyholders.
“Consumers are increasingly treating auto insurance as an ongoing value comparison, not a one-time renewal decision,” said Jeff Batiste, senior vice president and general manager, auto and home, LexisNexis Risk Solutions. “Our research shows that many auto insurance shoppers are open to switching, but price and perceived value ultimately determine whether they stay or leave. For insurance carriers, auto shopping behavior can be an early signal of competitive pressure and retention risk, and the ability to identify and act on those signals sooner can help retain profitable policyholders while uncovering opportunities to acquire new customers.”
Key Takeaways from the LexisNexis Risk Solutions white paper, “U.S. Auto Insurance Shopping and Switching Research Report: Examining Why Consumers Shop, Stay and Switch”
- Consumers are cost-conscious and willing to compare policy options, and many find the shopping experience easier than expected.
- Price often outweighs loyalty in both switching and staying decisions.
- While bundled policies still exhibit higher retention, bundling alone may not protect insurance carriers from consumers evaluating options.
- Insurance affordability is becoming a key part of the vehicle purchase decision.
- Auto and insurance-related events have a much greater impact on auto insurance shopping than life events.
- Download the full white paper to see what’s influencing auto insurance shopping decisions.
Auto Insurance Shopping Speeds Ahead
U.S. consumer auto insurance policy shopping levels have reached record highs, and nearly three-fourths (72%) of consumers who shopped their auto insurance say they are open to moving to a new insurer. This reflects that consumers are more likely to enter the shopping process with an “open-to-switch” mindset.
- Of the 72% of consumers open to moving to a new auto insurer, 17% were definitely seeking a new auto insurance company.
- The majority (87%) say the auto insurance shopping experience was easier than expected or met their expectations.
- Consumers age 66 and up have historically been among the most loyal auto insurance policyholders, but even this group shows signs of shifting behavior: 64% of those who shopped in the past year after not shopping for the previous 10 years say they would shop again if their rates increased, and 18% say they now plan to shop regularly.
- Download the full white paper to further explore consumer shopping and switching motivations.
As Rates Rise, Loyalty Lags
When insurers raised rates broadly to restore profitability, they triggered a comparison-shopping habit that persists even as some rate decreases are taking effect today. That focus on cost extends beyond the switching decision, with price continuing to outweigh loyalty even after consumers choose a new insurance carrier.
- Among those who changed to a new auto insurer, 86% say price was the reason.
- Only 15% of non-switchers give a non-rate-related reason for remaining with their current auto insurance company, meaning price – not necessarily loyalty – is what keeps policyholders in place.
- Among those who shopped and switched their auto insurance within the past year, 89% say they would likely shop again if rates increased, and 96% say they would likely change carriers.
- Download the full white paper for a deeper look at how auto insurance pricing can influence consumer decisions.
Bundling No Longer a Barrier
Consumers who are concerned about rising insurance costs are increasingly willing to unbundle policies if it helps them save money.
- Just over half (53%) of consumers had their auto policy bundled when they shopped their policies.
- 40% of consumers with a bundled auto policy were open to or specifically looking to unbundle when shopping their policy.
- Both bundlers and non-bundlers exhibited similar switch rates, with roughly one-third from each group moving to a new insurer.
- Download the full white paper to see why bundling may no longer be the retention safeguard it once was.
Policy Prices Influence Auto Purchases
Insurance affordability has become a major part of vehicle purchase decision-making. Consumers increasingly factor insurance into the total cost of owning a vehicle, which may affect which cars they consider, whether they move forward with a purchase and when they decide to buy.
- When asked which costs they would “definitely” weigh as part of a vehicle’s total cost of ownership, the cost of insurance ranks second (56%), only behind a monthly car payment (63%).
- Download the full white paper to understand the growing role insurance rates play in car-buying decisions.
Everyday Life Happens, But Rates Rule
Auto- and insurance-related events, like purchasing a new car or filing a claim, are far more likely to trigger shopping behavior than everyday life events. In the past, auto insurance companies increased rates across the board, which drove many consumers, including lower-risk and profitable customers, to shop for more favorable premiums.
- The survey found that 70% of consumers identified an auto- and insurance-related event as the single biggest factor influencing their decision to shop for insurance, compared with just 24% who cited a life event such as a change in income, buying a home or other personal circumstances.
- Among auto- and insurance-related triggers, premium increases were by far the most significant driver, with nearly half of respondents (49%) reporting that their rates had increased or were expected to increase.
- By contrast, life events played a smaller and more fragmented role in shopping behavior. Income changes represented the most influential life-event trigger, cited by 16% of consumers, while moving to a new home or state accounted for only 5% of shopping activity.
- Download the full white paper to learn more about the role auto- and insurance-related events play in shopping activity.
“As the auto insurance market continues to shift, insurers cannot rely on broad renewal strategies or outdated segmentation to protect profitability,” said Brad Hames, vice president, insurance acquisition and retention solutions, LexisNexis Risk Solutions. “Policyholders are actively comparing options, and carriers that use industry-wide insurance insights and predictive models to identify shopping signals earlier, price more precisely and engage with customers at the appropriate time will be better positioned to manage attrition risk and acquire the right prospects.”
Click here to learn more about the LexisNexis Risk Solutions tools that help insurers make smarter marketing decisions that fit risk appetite and grow a healthier, more profitable book.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions provides customers with information-based analytics and decision tools that combine public and industry-specific content with advanced technology and algorithms to assist them in evaluating and predicting risk and enhancing operational efficiency. Headquartered in metro Atlanta, Georgia, the company has offices throughout the world, serves customers in more than 190 countries and territories and is part of RELX. For more information, please visit LexisNexis Risk Solutions.
Media Contact:
Syed Shabbir
Director, Communications
Insurance and Healthcare
LexisNexis Risk Solutions
816-572-7709
syed.shabbir@lexisnexisrisk.com
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