Auto insurance shopping growth slows to 3%: LexisNexis

Insurance shopping and new policy growth fell in the first quarter of 2026, according to LexisNexis Risk Solutions' report, "Insurance Demand Meter." 

U.S. auto shopping growth decreased from 6.9% in the final quarter of 2025 to 3.2% in 2026, and new policy growth dropped from 7.1% to 3.6% in the first quarter. In that quarter, more than 47% of policies had been shopped at least once within the last 12 months — the highest rate recorded by LexisNexis since 2020, when the annual shop rate was 41%.

Policyholders over the age of 66 exhibited a higher growth rate than younger shoppers for the 13th consecutive quarter, at 7% growth, down from 11% by the end of 2025. The report notes that these consumers are generally considered to be an insurer's higher lifetime value customers, and that customer retention may have been impacted by premium increases which motivated more loyal customers to shop around.

"As auto insurance shopping growth begins to level off, loyalty can be what separates temporary wins from sustainable growth. Insurers that invest now in retaining hard-earned customers will likely be better positioned as the market shifts from rapid expansion to measured momentum," said Jeff Batiste, senior vice president and general manager of U.S. auto and home insurance at LexisNexis in the press release. "In this transitioning market, once loyal, profitable customers could be up for grabs. Insurers who recognize this can respond with compelling offers and personalized premiums to edge out competition."

Of all rate revisions of auto insurance policies that took effect in the first quarter of 2026, 35% were decreases, 39% were increases and 36% resulted in no change. The combined average rate change for the quarter was just over a 1% decrease, with rate cuts averaging 5% and increases averaging nearly four percent.

While many states implemented rate decreases during the quarter, several large markets in New York, California, Louisiana and New Jersey continued to roll out rate increases that built on adjustments introduced in 2025. Those ongoing increases likely contributed to elevated shopping activity as consumers sought lower premiums. New York led with an 11.8% shopping growth rate, followed by California at 10.4%, Wyoming at 10.1%, Louisiana at 10% and 9.7% for New Jersey.