Toronto, Ontario -- According to new data from J.D. Power, Canadian drivers are switching auto insurance providers at record rates.
The firm’s Q3 2025 U.S. insurance loyalty indicator and shopping trends report shows that 4.5 percent of auto insurance customers changed carriers last quarter — the highest switching rate ever recorded.
The report notes that rising premiums are a key motivator behind the trend. Drivers who switched carriers paid an average premium exceeding US$4,500 (about $6,200), representing a significant share of household budgets.
Shopping activity also reached new highs, with 13.2 percent of consumers comparing rates in the third quarter — up slightly from Q2. Gen Z consumers are driving much of that movement.
Another major factor influencing insurance choices is artificial intelligence. More than 40 percent of respondents said they used AI tools to help shop for insurance. Of that group, 80 percent of those users said these tools were helpful.
J.D. Power also found that customer satisfaction with insurers declined quarter over quarter as shopping and switching increased. The report links that drop to growing frustration over premium hikes and limited communication from carriers. These trends that suggest insurers are struggling to keep pace with changing customer expectations.
