Shopping Statistics: The Record-Breaking Numbers

Car insurance shopping has reached an all-time high — and the momentum is still building. According to the J.D. Power 2025 U.S. Insurance Shopping Study, 57% of auto insurance customers actively shopped for a new policy — the highest rate ever recorded in the study's 19-year history, up from 49% in 2024. LexisNexis reinforces this, showing 47.1% of all U.S. auto policies-in-force were shopped at least once in the 12 months ending Q4 2025 — a 5.9-point jump from Q4 2023. TransUnion's Q1 2026 report confirmed auto shopping grew +10.6% year-over-year in Q4 2025, outpacing property insurance shopping at +5.3% and marking what analysts describe as a potential "permanent shift" in consumer behavior.

The momentum has carried into 2026. Switching intent has hit a new record: one in three (33%) auto insurance holders say they are likely to switch providers within the next 90 days — the highest level since Q1 2018. Notably, even 30% of satisfied policyholders say they're likely to switch, driven by financial pressure and digital advertising exposure.

These aren't just interesting numbers — they reflect a fundamental shift in how American drivers view their car insurance relationship. Understanding the car insurance industry trends shaping this landscape can help you make smarter decisions about your own coverage.

What's Driving the Shopping Surge?

The rise in shopping activity isn't random. Several converging forces are pushing drivers to compare rates more aggressively than ever before.

Rate Volatility — Now Stabilizing

The single biggest trigger is premium sticker shock. Auto insurance rates surged an average of 46% from 2022 to 2024, far outpacing general inflation. By 2025, the market began cooling: Insurify reports the national full-coverage average dropped approximately 6% in 2025, and the 2026 national full-coverage average ranges from $2,124 to $2,496 per year depending on the source and methodology. More than half of U.S. states are projected to see rate decreases in 2026, led by Iowa (-6.19%), Minnesota (-5.29%), Arkansas (-4.70%), and Missouri (-4.45%). However, states like New Jersey (+10.46%), Nevada (+6.42%), and California (+6.13%) still face meaningful hikes. Learn more about why some premiums are still rising in certain states.

Digital Tools Making It Effortless

Technology has dramatically lowered the barrier to comparison shopping. Online comparison platforms, mobile apps, and AI-powered quote tools mean drivers can get multiple quotes in minutes. In 2025, 47% of auto insurance consumers purchased policies through digital platforms (websites and mobile apps) — compared to just 35% via agents and 17% via call centers. Even more striking: 42% of drivers have now used AI assistants for car insurance shopping, rising to 60% among Gen Z. A full 86% of drivers say they are open to using AI to help find better rates — and 76% believe it simplifies the shopping process. For a closer look at how AI is reshaping pricing and shopping, see our guide on car insurance industry trends.

Economic Pressure Pushing Budgets

With average full-coverage premiums still running above $2,100 per year, insurance remains one of the most significant recurring household expenses. That financial pressure motivates even historically loyal customers to explore their options. A 2026 survey found that price is the #1 driver for switching, cited by 66% of consumers planning to change carriers — outpacing coverage options (45%), customer experience (38%), and company reputation (37%). For a deeper look at how rate changes affect your budget, see our breakdown of average car insurance costs in 2026.

Increased Insurer Ad Spending

Insurance companies have significantly ramped up marketing budgets to capture new-to-market shoppers. The exclusive agent distribution channel showed positive growth (+5.3%) for the first time in 2025 — largely tied to increased advertising spend. The direct channel grew even faster at +12.6%. This visibility keeps insurance top-of-mind and further normalizes comparison shopping behavior. Even among satisfied policyholders, digital ads and targeted promotions are prompting quote requests that turn into switches.

Who's Shopping, When, and Through What Channel

Demographics: Who Shops Most

While younger drivers under 30 show the highest switching intent (56%), one of the most noteworthy demographic trends is the surge among older consumers and long-tenured policyholders. Seniors aged 66+ showed an 11% quarterly growth rate in shopping activity across 12 consecutive quarters — a group once considered among the most loyal and least active in the market. Long-tenured policyholders with 10+ years at the same insurer showed a striking +35% year-over-year increase in shopping activity, with 25% of recent switchers having had 6+ years with their prior insurer.

Gen Y (Millennials) and Gen Z are most interested in bundling auto with homeowners' policies (47% actively interested), and 84% of Gen Z and Millennials express strong enthusiasm for insurance options offered at vehicle purchase. Higher-risk consumers — those with lower credit scores — remain the most active shoppers overall.

Here's how shopping activity breaks down across key segments:

For seniors specifically, factors that affect car insurance rates vary significantly by company — making comparison shopping especially valuable for this group.

Channels: Digital Is Winning

Shopping activity through digital channels reached a tipping point in 2025. 47% of auto insurance purchases were completed via website or mobile app, compared to just 35% through agents and 17% via call centers. AI chatbots now offer 24/7 quote support with no hold times, and telematics-based tools provide behavior-driven, personalized pricing — with 82% of policyholders viewing telematics apps positively and 60% open to usage-based insurance. The trend is clearly accelerating toward fully digital experiences, including embedded insurance offered at vehicle purchase through partnerships with major automakers.

One striking data point: 77% of consumers still compare only one or two insurers before making a decision — leaving significant savings on the table. Learn how to compare car insurance quotes effectively so you're not in that majority.

Timing: Is There a Best Month to Shop?

While insurance shopping is increasingly year-round, some strategic windows stand out:

• 30–60 days before your renewal date — The widely recognized "sweet spot." You have time to compare properly without risking a lapse, and you can time the switch to your renewal to avoid early cancellation fees.
• December and January — Some insurers adjust rates at the start of the new year, and fewer consumers are actively shopping during the holidays, which can mean more competitive offers.
• After a major life event — Marriage, a move, a new vehicle, a teen driver aging onto your policy, or a traffic violation aging off your record are all moments when your rate profile changes and fresh quotes can yield better pricing.

The bottom line: there's no universally "bad" time to shop, and how often you shop for car insurance matters more than picking the perfect month.

Smart Shopping Strategies for 2026

Does Frequent Switching Hurt You?

This is one of the most common questions drivers have — and the answer is nuanced. Insurers may view frequent switchers as less desirable, and rates often increase at first renewal when new-customer discounts expire. Experts recommend shopping every 12 to 24 months, or whenever you experience a significant life event or rate hike — rather than switching every six months. There is no impact on your credit score, however — insurance quotes use a "soft pull" that leaves no trace on your credit history.

That said, there are a few practical considerations:

• Mid-term cancellations may incur a flat fee ($20–$75) or a short-rate penalty from your current insurer.
• Drivers switching from non-standard (high-risk) carriers to major insurers may face higher initial rates.
• Loyalty discounts at your current insurer may offset potential savings elsewhere — always factor those in before switching.
• Post-accident switches are generally discouraged, as your current insurer may already be managing the claim.

Learn more about when and how to switch car insurance to avoid common pitfalls.

How Many Carriers Should You Compare?

The data shows most consumers don't compare nearly enough. 77% of shoppers evaluate only one or two carriers before making a decision, even though getting three to five quotes can mean hundreds of dollars — or more — in annual savings. Consumer Reports surveys show over 80% of switchers to top-gaining carriers cited better premium prices as their motivation, with leading companies like NJM (87%), Hartford (85%), and Hanover (83%) all winning customers on price. Comparison platforms report average savings of $461 to over $1,100 per year for drivers who shop broadly. Given that car insurance rates vary significantly by company — sometimes by $1,000+ per year for identical coverage — limiting yourself to one or two quotes is leaving real money on the table.

Your 2026 Action Plan

1. Check your renewal date — Start shopping 30–60 days out
2. Gather your current declarations page — Know exactly what you have before comparing
3. Get quotes from at least 3–5 carriers — including at least one direct carrier and one through an agent
4. Check for life event triggers — New vehicle, address change, marriage, or a violation aging off your record
5. Compare auto insurance companies side by side — Don't just look at price; evaluate claims service and financial strength ratings
6. Ask about telematics programs — Usage-based insurance (UBI) apps can unlock personalized discounts of 10–40% for safe drivers
7. Review what affects your rate — Use our guide on what affects car insurance rates to understand and avoid common coverage cost traps

Understanding the 2026 rate forecast for your state can also help you decide whether to lock in a rate now or wait. You can also read our step-by-step guide to getting car insurance quotes to make the process seamless. If your state is among those seeing decreases, explore our guide to rate decrease opportunities in 2026 to find out exactly how much you could save.

Frequently Asked Questions

How many people shop for car insurance every year?

According to J.D. Power's 2025 U.S. Insurance Shopping Study, a record 57% of auto insurance customers shopped for a new policy — up from 49% in 2024 and the highest percentage in the study's 19-year history. LexisNexis data shows 47.1% of all U.S. auto policies-in-force were shopped at least once in the 12 months ending Q4 2025, while TransUnion confirmed auto shopping grew +10.6% year-over-year in Q4 2025. Early 2026 data shows 33% of policyholders plan to switch within 90 days — the highest switching intent since 2018 — suggesting the shopping surge is not slowing down.

What is the best time of year to shop for car insurance?

The most strategically sound time to shop is 30 to 60 days before your policy renewal date. This gives you enough time to compare quotes, secure a new policy, and time the switch to your renewal to avoid early cancellation fees. December and January can also be favorable windows, as insurers often adjust rates at the start of the year and fewer consumers are actively shopping during the holidays. That said, shopping is worthwhile any time you receive a rate hike, experience a major life event, or simply haven't compared in the past 12 to 24 months.

Does shopping around for car insurance hurt your credit score?

No — car insurance quotes do not affect your credit score. Insurers use a "soft pull" or an insurance-specific credit inquiry that has no impact on your credit history. You can request as many quotes as you want from as many carriers as you like without any credit consequence. This is one of the most common misconceptions about insurance shopping, and it's one less reason to hesitate when comparing rates.

Why are so many seniors shopping for car insurance in 2025–2026?

Seniors aged 66+ showed an 11% quarterly growth rate in shopping activity — outpacing every other age demographic for 12 consecutive quarters. After years of being among the most loyal and least active shoppers, this group has been motivated by steep cumulative premium increases of 46% from 2022 to 2024 and the growing ease of digital comparison tools. Many seniors also experienced targeted rate increases as insurers recalibrated their risk models following the 2022–2024 pricing cycle, making the financial incentive to shop stronger than ever. Comparing rates across multiple carriers can yield significant savings for this group.

Is it worth switching car insurance every year?

Shopping annually is always worth doing, even if you don't end up switching. If you receive a meaningful rate increase at renewal, it's a clear signal to compare. If your situation has changed — new car, new address, improved credit score, or a violation aging off your record — fresh quotes will likely reveal better pricing. Consumer Reports surveys show over 80% of drivers who switched to top-rated carriers cited better premiums as their motivation, and roughly 82% of switchers in 2025 reported saving money after switching. At minimum, get competing quotes at every renewal to ensure you're not quietly overpaying — and review our guide on how often you should switch car insurance for a data-backed framework.