Auto insurance consumers are switching carriers at elevated rates, even as the rapid growth in insurance shopping begins to level off, according to JD Power.
The details: The JD Power Signals Intelligence for Personal Lines Insurance Quarterly Report, developed in collaboration with TransUnion, found that auto insurance shopping rates remained steady year over year, while the share of consumers switching carriers increased.
About 13% of auto insurance customers shopped for coverage, unchanged from a year earlier but up 0.6 percentage points from the second quarter.
Roughly 5% switched carriers, an increase of 0.6 percentage points both quarterly and annually.
Why it matters: Elevated insurance switching rates, even as shopping activity stabilizes, signal that insurance costs and coverage options could remain important considerations in vehicle affordability discussions and customers’ purchasing decisions.
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Between the lines: Auto insurance switching hit a record monthly rate of 5.3% in August before easing to 5.0% in September, matching the previous record set in July.
JD Power’s historical data shows average auto insurance shopping rates rising from 11.4% in 2021 to 13.1% year-to-date in 2026, an increase of approximately 15%.
During the same period, switching rates climbed from 3.4% to 4.6%, a 35% increase.
Also worth noting: The report suggests artificial intelligence-powered shopping tools could make it easier for consumers to compare insurance rates and coverage, potentially influencing shopping and switching activity in the coming years.
Bottom line: The elevated rate at which consumers continue to switch insurance carriers, with AI-powered tools potentially making the process easier, highlights the importance of dealers staying attuned to buyers’ insurance concerns throughout the sales experience.
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