High car insurance rates across the country are pushing more drivers to shop for affordable coverage than ever before, a new LexisNexis study indicates.
In 2024, more than 45% of policyholders comparison shopped for new auto insurance at least once, according to the report. It was the highest shopping rate ever, LexisNexis noted.
Auto and home insurance rate increases in most states and more marketing by insurance companies drove the record-setting comparison shopping, the report said.
By the end of 2025, the average cost of full-coverage car insurance will rise by 7%, according to a report by Insurify. Likewise, Insurify data scientists predict the average cost of home insurance will climb by 8% in the same time frame.
On average, drivers stay with the same insurer for about 5.5 years, seven years if they bundle their auto insurance with another policy type, like homeowners or renters, according to the J.D. Power 2025 U.S. Insurance Shopping Study. But LexisNexis found those longer-term customers did the most shopping in 2024.
Policyholders who’d been with the same company for more than five years represented 24% of all shoppers, the risk solutions company reported. They also switched insurers more than other shoppers. Switching by long-standing customers accounted for 16% of new business in the first quarter of 2024 and reached 40% by the end of the year.
In many industries, keeping customers is more profitable than acquiring new ones. The insurance industry is no different, said Matt Brannon, a data journalist with Insurify.
“The property and casualty industry has seen customer retention rates drop dramatically in the past few years due in large part to significant rate increases,” Brannon said. “It’s a potentially self-perpetuating cycle. Higher rates push more consumers to shop and switch, which can undermine profitability, which could inspire insurers to raise rates further.”
Insurance companies may need to be proactive if they want to keep customers, LexisNexis suggested in its report. “Against a backdrop of heightened levels of shopping and switching activity, insurers may want to focus on their retention strategies, especially when long-tenured customers are hitting the market,” the report said.
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15+ years in content creation
7+ years in business and financial services content
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Licensed property and casualty insurance agent
8+ years editing experience
NPN: 20461358
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