Fewer Insureds Shopping, More Switching, Says JD Power

Shopping slowed, but switching endures.

That’s according to a recent report from J.D. Power, assessing insureds’ shopping habits for auto, home and renters’ insurance in Q2 2025.

Overall shopping declined this quarter after setting a record high for auto shopping last quarter. Shopping rates for both auto and property rose throughout last year, so this represents a cooling off for the space.

Auto Shopping Still Up Overall

While auto insurance shopping is still elevated, shopping was down quarter-over-quarter and year-over-year. However, switching was up over both periods. The shopping rate was 13.0% for Q2, which is down 1.1 percentage points quarter-over-quarter and down 0.3 points year-over-year. The switch rate was 4.2%, which is up 0.1 points quarter-over-quarter and up 0.3 points year-over-year, matching the record high set in Q3/Q4 2024.

Home Shopping Down, Switching Up

Home insurance shopping was also down quarter-over-quarter and year-over-year; however, switching was up/unchanged. The shopping rate was 6.5% for Q2, which is down 0.1 percentage points quarter-over-quarter and down 0.3 points year-over-year. The switching rate was 2.5%, which is unchanged quarter-over-quarter and up 0.3 points year-over-year. June brought an uptick in both shopping (6.8%) and switching (2.8%).

Who Is Shopping and Switching?

Despite overall stability, there are shoppers who are still bargain hunting. Higher-risk customers are more actively shopping for auto and property insurance, and bundlers are shopping and switching for auto insurance at increased rates.

High-risk consumers: Those with lower credit-based insurance scores and corresponding higher premiums are more actively shopping for both auto and property. However, higher-risk customers are more likely to be actively shopping for auto and property. Shopping activity among high-risk insureds increased for both auto and property above the previous year, up 10% and 5%, respectively.

Bundlers: The once stable and steady bundlers are now shopping and switching at increased rates as auto insurance rates stabilize and homeowner rates rise. While unbundled customers’ switching rate has flattened over the past five quarters, bundled customers saw a spike that has remained consistently high during that period. While unbundled switching peaked at 6.8% in Q4 2022, remaining between 5.2% and 6.2% in the interim, bundler switching peaked at 3.1% in Q3 2024 and has hovered around 3% for the last three quarters. The report projects that these trends will continue with consumers seeking cost savings and the emergence of new marketplaces and shopping tools making shopping and switching easier for consumers.

Renters: While renter shopping and switching both peaked in September of last year at 7.3% and 6.9% respectively, shopping rates have steadily decreased while the switching rate rode a rollercoaster between 3.6% and 5.2%, currently resting at 4.3%, up 0.5 points quarter-over-quarter and up 0.6 points year-over-year. The shopping rate was 5.9% for Q2, which is down 0.3 percentage points quarter-over-quarter and down 0.1 points year-over-year.