U.S. Auto Insurance Shopping Growth Cools to 'Warm' in Q1 2026
Event summary
- U.S. auto insurance shopping growth slowed to 3.2% YoY in Q1 2026, down from 6.9% in Q4 2025.
- New policy growth decreased to 3.6% YoY, from 7.1% in Q4 2025.
- Policyholders aged 66 and older led shopping growth at 7.1% YoY, the 13th consecutive quarter of leading growth.
- Direct channel growth remained strongest at 9.4%, while the independent agent channel contracted by 7.9%.
- 47.3% of policies-in-force were shopped at least once in the past 12 months, the highest rate since tracking began in 2020.
The big picture
The cooling of auto insurance shopping and new policy growth suggests a stabilization of consumer behavior after a period of elevated activity. This shift is likely influenced by carriers implementing rate decreases and a slowdown in vehicle sales. The direct channel's continued strength and the independent agent channel's decline highlight uneven activity across distribution methods. Insurers focusing on customer retention and personalized premiums may gain a competitive edge in this transitioning market.
What we're watching
- Customer Retention
- How insurers will adapt to retain high-value customers as shopping behavior stabilizes.
- Rate Revisions
- Whether rate decreases will continue to impact consumer shopping behavior differently than increases.
- Channel Dynamics
- The pace at which direct and exclusive channels will sustain growth compared to the declining independent agent channel.
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