Auto Insurance Shopping Rebounds After Dropping During Spring

Auto insurance shopping and new business growth rebounded in May and June after a drop in late March and early April due to COVID-19 shutdowns, civil unrest and other events. However, there was little impact on the annual shopping rate, which remained strong for both the first and second quarters, according to the LexisNexis Risk Solutions latest Insurance Demand Meter.

The meter reports quarterly U.S. auto insurance shopping activity data from all outlets.

Among the meter’s findings for the second quarter:

Source: LexisNexis Risk Solutions

Early Q3 Trends
Early Q3 numbers show both shopping and new business volumes are tracking to pre-COVID-19 levels, and market conditions are developing to potentially spur increased shopping growth rates.

“Cancellation moratoria imposed by carriers at the height of the COVID crisis will be expiring, state governments are reopening and issuing more driver’s licenses, and carriers are starting to file for rate decreases,” said Tanner Sheehan, associate vice president of auto insurance at LexisNexis Risk Solutions. “These are all signs that shopping has strong potential to pick up as the quarter progresses.”