Older Policyholders and Direct-Channel Shoppers Drive Q3 Auto Insurance Growth
The latest insights from the US Insurance Demand Meter, compiled by LexisNexis Risk Solutions, reveal that the third quarter of 2025 saw a notable surge in auto insurance shopping, led by older consumers and direct-channel shoppers. Policyholders aged 66 and older demonstrated remarkable activity, posting more than 10% year-over-year growth in shopping behavior, while direct distribution channels reported an even stronger lift of 14.1%.
Overall, consumer interest in auto insurance shopping rose 6.4% compared with the same period last year, slightly lower than the 9.4% growth observed in Q2. New policy activity also climbed, albeit at a more modest pace, increasing 2.8% year-over-year after a 3.6% rise in the previous quarter. Agency performance showed a mixed picture: exclusive agencies experienced a slight decline of -0.8%, while independent agencies achieved a 2.8% gain. The annual shop rate—a measure of how actively consumers compare policies—remained steady at 46.5%, maintaining the level observed in Q2.
The uptick in activity among older consumers mirrors broader national trends in insurance shopping. According to reports, interest in comparing auto insurance policies has reached record highs in 2025, as rising premiums encourage long-standing policyholders to explore more affordable options. This behavior highlights a shift in consumer mindset, where even historically loyal customers are increasingly sensitive to cost and value.
Supporting this trend, J.D. Power’s 2025 US Insurance Shopping Study found that 57% of auto insurance customers engaged in shopping behavior in 2024—the highest rate in the 19-year history of the study. The research attributes this surge to accelerated rate activity and heightened consumer attention to pricing, signaling a more proactive and price-conscious insurance market.
Notably, bundled and high-value customers—those who typically maintain long-term policies—have become more active shoppers. J.D. Power reported that one-third of shoppers in 2025 sought bundled auto and home policies, reflecting an increasing willingness to switch carriers to optimize overall value. This marks a departure from previous years when such policyholders were relatively stable and less likely to shop around.
Geographically, the LexisNexis data highlighted pockets of strong quarter-over-quarter growth, with 15 states plus the District of Columbia registering higher levels of shopping activity compared with Q2, which saw minimal increases. Among the top performers, certain states posted impressive gains, with shopping activity rising as much as 16% in some areas, followed by double-digit increases elsewhere.
Rate filings during Q3 showed a varied landscape: approximately one-third of submitted rates were decreases, averaging -4.2%, 35% were increases averaging +5.1%, and 31% remained rate-neutral. Meanwhile, consumer interest in alternative insurance models has grown. J.D. Power’s research indicated that 37% of auto insurance customers expressed interest in policies sold through embedded channels, such as auto dealerships or manufacturers, reflecting a desire for more integrated and convenient purchasing options.
Jeff Batiste, senior vice president and general manager for US auto and home insurance at LexisNexis Risk Solutions, noted that the trends highlight the ongoing engagement of long-tenured customers who are actively shopping for better options. He emphasized that direct distribution remains a particularly robust channel for insurers aiming to strengthen relationships with policyholders and respond to evolving consumer expectations.
As the auto insurance market continues to adapt to rising premiums, evolving consumer preferences, and emerging purchasing channels, insurers will need to maintain flexibility and responsiveness to capture growth opportunities, particularly among older policyholders and those seeking direct, convenient access to coverage.