Auto Insurance Shopping Sees Significant Increase in Q1 2025
CHICAGO, May 13, 2025 — Auto insurance shopping experienced a notable 10% increase in the first quarter of 2025 compared to the same period last year, according to recent research by TransUnion. Home insurance shopping also saw a rise, with a 5% year-over-year increase. This surge in insurance shopping activity marks a return to historical patterns, with higher-risk consumers leading the charge in auto insurance shopping for the first time since Q4 2021.
The TransUnion Insurance Personal Lines Trends and Perspectives Report attributes this shift to insurers potentially returning to traditional practices of focusing rate increases on higher-risk segments rather than implementing across-the-board increases. As a result, while higher-risk customers continue to shop around for better rates, mid- and low-risk customers have seen their rates stabilize.
“As rates have settled for the majority of auto insurance customers, we’re seeing a return to historical insurance shopping patterns, where price sensitivity closely correlates with relative insurance risk,” said Patrick Foy, senior director of strategic planning for TransUnion’s Insurance business. “However, uncertainty surrounding the cost and availability of parts for vehicle and home repairs could potentially lead to broad-based price increases in the future. Additionally, weather-related catastrophes have become increasingly common and costly.”
The report highlights a significant increase in natural disasters, with 27 observed $1 billion-plus disasters in 2024, more than double the 2010-2019 average of 13 disasters per year. The total cost of these disasters in 2024 reached around $183 billion, also more than double the average annual cost in the 2010s.
The home insurance landscape is also undergoing changes due to generational shifts in homeownership. The report notes that in 2009, more than half of Gen X consumers owned homes, but by 2024, only 41% of Millennials at a similar age were homeowners. This shift is primarily attributed to the increasing size and cost of housing inventories, leading to delayed homeownership or pricing many young adults out of the market entirely.
Consequently, there’s a noticeable change in household composition, with multi-generational households becoming more common. The data shows that only 38% of credit-active occupants were living alone as of 2024, down from 45% in 2009. A recent TransUnion consumer survey revealed that 18% of Gen X, 26% of Millennials, and 35% of Gen Z plan to provide financial support to parents and grandparents in the next five years.
“As consumers adjust their lifestyles to new economic realities, insurers must also adapt their policy offerings,” Foy noted. “Multi-generational households represent a different risk profile and audience segment for marketing. By acknowledging this emerging trend, insurers can design products that more effectively price inherent risks and create advertising campaigns that better resonate with their target customers.”
TransUnion’s TruAudience suite of marketing solutions can help insurers achieve more effective marketing by assisting with identity resolution, audience building, and measurement.
For more detailed insights, you can access the full Insurance Personal Lines Trends and Perspectives Report.
