U.S. Auto Insurance Shopping and New Business Growth Hit Record Highs in Q4 2025
Event summary
- U.S. auto insurance policy shopping grew 6.9% year-over-year in Q4 2025, maintaining a 'Hot' reading on the LexisNexis® U.S. Insurance Demand Meter.
- New policy growth surged to 7.1%, up from 2.8% in Q3 2025, also reaching 'Hot' territory.
- Policyholders aged 66 and older showed the highest growth rate at 11%, continuing a 12-quarter trend.
- The exclusive agent distribution channel posted its first positive growth rate of 5.3% in 2025.
- 50% of rate modifications in Q4 were decreases, contributing to an overall industry rate impact of -0.5%.
The big picture
The U.S. auto insurance market is operating outside traditional cycles, with elevated shopping and new business growth despite shifting from steep rate increases to broad-based decreases. The industry must navigate this volatility with precise segmentation and disciplined strategies to avoid future instability. The record-high annual shop rate of 47.1% underscores the heightened consumer activity driven by favorable pricing conditions and marketing programs.
What we're watching
- Consumer Behavior Shifts
- Whether the increased shopping activity among older and long-tenured policyholders will sustain into 2026.
- Rate Adjustment Impact
- How the new wave of rate adjustments in Q4 will affect consumers' urge to shop more frequently.
- Channel Performance
- The pace at which the exclusive agent channel can maintain its positive growth trajectory.
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