On May 20, 2025, the LexisNexis® Risk Solutions U.S. Insurance Demand Meter reported that U.S. consumer auto insurance shopping remained elevated in the first quarter of 2025. Auto policy shopping growth reached 'Sizzling' at 16%, and new policy growth came in 'Hot' at 8.4%.
These readings represent a slight cooling from Q4 2024, but still indicate strong market activity. Direct channel usage was a key driver of first-quarter growth across all age groups, outpacing both independent and exclusive agent channels with a 34% year-over-year increase.
The report also highlighted a decline in average policy retention, dropping to 78% by the end of Q1 from 83% in early 2022. Historically loyal segments, such as policyholders aged 66 and older, are now contributing significantly to the uptick in shopping and switching behavior.
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