Toronto, Ontario -- Most U.S. drivers considered getting new auto insurance policies in 2024, a new study has found.
According to the 2025 U.S. Insurance Shopping Study from J.D. Power, a record-breaking 57 percent of drivers hunted for new policies in the past year, up from 49 percent in 2023. The phenomenon has been linked to higher premiums and to increasingly savvy consumers.
“Auto insurance rate taking reached multi-decade highs in the first quarter of 2024, which put record numbers of customers into the market shopping for lower-priced policies as the year progressed,” said Stephen Crewdson, managing director of insurance business intelligence at J.D. Power in a press release. “As rate activity began to fall in the second half of 2024, many shoppers were successful at finding lower-priced policies. That combination of increased shopping and less rate taking created a bit of a snowball effect for much of the year, but we are seeing signs that shopping rates are starting to normalize."
The first quarter of 2024 saw the worst of it. Average auto insurance rates surged by a sizzling 13 percent, stoking an unprecedented level of shopping activity. While those increases cooled to less than two percent by year-end, the mood among consumers remained restless.
"A potentially bigger concern for the industry right now might be the increased interest many consumers are showing in embedded insurance providers, like auto dealers, financing companies and manufacturers," added Crewdson.
Consumers aren't just shopping — they’re swapping policies. In fact, nearly half of those who browsed for better deals ended up switching insurers. These decisions were driven by the promise of lowered premiums.
The study also found that bundling — the practice of combining auto policies with home insurance — has become a favourite tactic for those looking for stability. About a third of insurance purchasers sought out bundling options. Those who use bundled options tend to stay with insurers for an average of seven years, eighteen months longer than the average consumer.
