U.S. auto insurance shopping and new business growth shifted from “hot” to “warm” in Q1 2026, according to the latest U.S. Insurance Demand Meter from LexisNexis Risk Solutions.

Year-over-year (YOY) shopping growth decreased to 3.2%, turning negative in March, down from an increase of 6.9% in Q4 2025.

New policy growth dropped to 3.6%, and shopping remained significantly elevated relative to historic levels. This was down from a 7.1% increase in Q4 2025, which sat closer to levels seen in mid-2025, LexisNexis found.

Policyholders age 66 and older led all age cohorts for the 13th consecutive quarter, with shopping growth rising 7.1% YoY.

The direct channel has the highest growth at 9.4%, while the exclusive agent channel grew 5.6%, up from 5.3% in Q4 2025. The independent agent channel contracted -7.9%. Non-standard shoppers contributed to the broader growth slowdown, dropping -5.8% in Q1 after growing 12.2% in Q4 2025.

At the end of Q1, 47.3% of policies-in-force had been shopped at least once in the previous 12 months — the highest rate recorded since the Insurance Demand Meter began tracking in 2020.

YoY growth for shopping and new business decelerated in Q1, suggesting that consumer shopping behavior is stabilizing, LexisNexis said.

“The slowing is likely the result of carriers implementing rate decreases and diminished vehicle sales,” a LexisNexis press release states. “Stabilization is also reflected in the recent flattening of retention rates among auto policyholders. In March, vehicle sales contrasted significantly with March 2025, when many consumers purchased vehicles ahead of potential tariffs that drove strong additional shopping activity.”

LexisNexis also found that rate revisions for U.S. auto insurance policies that went into effect in Q1 2026 reflected a continued shift in market conditions.

Among all rate revisions, 35% were decreases, 39% were increases, and 26% were rate-neutral.

The aggregate rate change in Q1 was -1.1%, with decreases averaging -5.1% and average increases reaching 3.9%. Those percentages closely mirrored activity among the top 25 auto carriers, which showed a similar pattern: 42% of rate revisions were decreases, 26% were increases, and 30% were rate-neutral. This brought average decreases to -5% and average increases to 4%, according to LexisNexis’ findings.

“While overall industry growth remained positive, rate decreases are less likely to trigger consumers to shop than rate increases,” the release states.

Jeff Batiste, LexisNexis Risk Solutions U.S. auto and home insurance senior vice president and general manager, added, “As auto insurance shopping growth begins to level off, loyalty can be what separates temporary wins from sustainable growth. Insurers that invest now in retaining hard-earned customers will likely be better positioned as the market shifts from rapid expansion to measured momentum.

“In this transitioning market, once loyal, profitable customers could be up for grabs. Insurers who recognize this can respond with compelling offers and personalized premiums to edge out competition.”

Only four states recorded shopping growth of at least 10% or greater in Q1, compared to 11 states in Q4 2025 that reached the mark.

New York led all states with 11.8% growth, followed by California (10.4%), Wyoming (10.1%), and Louisiana (10%). New Jersey fell just below the threshold at 9.7%.

Growth patterns seen throughout the country were likely tied in large part to rate revisions, LexisNexis said.

“While many states experienced decreases, states like New York and California implemented increases that built on the increases from 2025,” the release states. “In these states, where rate filing approvals may take longer, the speed of adjustments taking effect is impacted, which can affect shopping.

“While rate decreases may impact market activity in new ways, even slowing growth rates, longer-tenured customers may be rewriting the rules of engagement for loyalty when it comes to shopping and channel preferences.”

J.D. Power also recently released its Q1 2026 Loyalty Indicator & Shopping Trends (LIST) report, which found that auto insurance shopping and switching were up compared to Q4 2025.

Shopping was up 0.6 points to 13.6% during Q1, while switching was up 0.1 points to 4.2%. YoY shopping was down 0.5 points, while switching was up 0.1 points.

“Auto and property shopping is led by lower-credit-score consumers, indicating pricing normalization,” the report states. “Ongoing affordability challenges are turning consumer insurance shopping into a routine activity. Nearly 4 in 5 consumers shopped one or two insurers in Q3 2025, suggesting faster decision-making with fewer options considered. Notably, single-insurer shoppers skew toward older Baby Boomers, less-populated ZIP codes, and captive agents.”

Among auto insurance switchers, the median premium amount moving carriers is more than $3,200.

After gradual increases in shopping peaked in February 2026, shopping dropped considerably by a full point in March, while switching saw gradual increases in both February and March, according to the report.

Images

Featured image credit: Drs Producoes/iStock

Graph provided by LexisNexis

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