U.S. auto insurance shopping and new policy growth slowed during the first quarter of 2026, according to the latest LexisNexis U.S. Insurance Demand Meter. Although growth rates cooled from late 2025, shopping activity remained elevated relative to historic levels.

Shopping and New Policy Growth Slow

LexisNexis reported that year-over-year auto insurance shopping growth reached 3.2% in Q1 2026, down from 6.9% in Q4 2025. Meanwhile, new policy growth declined to 3.6% after reaching 7.1% in the previous quarter. March shopping activity also turned negative year over year.

Despite the slowdown, annual shopping activity continued to rise. By the end of Q1, 47.3% of policies in force had been shopped at least once in the previous 12 months. LexisNexis said this marked the highest level recorded since the Insurance Demand Meter began tracking activity in 2020.

The report stated that stabilizing shopping behavior likely reflected rate decreases implemented by carriers and reduced vehicle sales activity. Vehicle sales in March also contrasted sharply with March 2025, when consumers purchased vehicles ahead of potential tariffs, which increased shopping activity.

Rate Changes Influence Consumer Activity

Rate revisions continued to shape shopping behavior during the quarter. Across the industry, 35% of rate revisions were decreases, 39% were increases, and 26% remained neutral. The aggregate rate change for Q1 was -1.1%. Average decreases measured -5.1%, while average increases reached 3.9%.

Among the top 25 auto carriers, 42% of rate revisions were decreases, 26% were increases, and 30% remained rate-neutral. Average decreases reached -5.0%, while average increases averaged 4%.

LexisNexis noted that rate decreases are generally less likely to encourage consumers to shop compared to rate increases.

Direct Channel Leads Growth

The direct channel posted the strongest growth during Q1 at 9.4%. The exclusive agent channel also improved, increasing 5.6% compared to 5.3% growth in Q4 2025. This marked the second consecutive quarter of positive growth for the exclusive agent channel.

In contrast, the independent agent channel declined -7.9% during the quarter, worsening from the -0.1% decrease recorded in Q4 2025.

Non-standard shoppers also contributed to the broader slowdown. Growth among non-standard shoppers fell -5.8% after rising 12.2% in Q4 2025. LexisNexis stated that inflation, affordability pressures, and vehicle ownership costs may have influenced the decline. Standard shoppers remained closer to overall market trends, posting 3.9% year-over-year growth.

Older Consumers Continue To Shop

Policyholders age 66 and older recorded the strongest shopping growth for the 13th consecutive quarter, increasing 7.1% year over year. Other age groups reported smaller changes. Shoppers ages 26 to 35 declined -0.3%, while shoppers ages 36 to 45 increased 2.3%. Consumers ages 46 to 55 and 56 to 65 each increased 3.4%.

New York led all states in shopping growth at 11.8%, followed by California at 10.4%, Wyoming at 10.1%, and Louisiana at 10%. New Jersey reached 9.7%. LexisNexis said rate revisions likely influenced state-by-state growth patterns, particularly in states where rate filing approvals take longer.

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