Critical Shifts:
-
Insurance is driving vehicle choice: With 47.2% of policies shopped in the past year, auto insurance has become a core affordability factor. Buyers are factoring ongoing insurance costs—not just sticker price and monthly payments—into their decision between similar vehicles.
-
Cost-conscious shopping is becoming routine: Surging advertising and digital tools are normalizing policy comparisons as a regular part of vehicle ownership, rather than a one-time reaction to premium hikes.
-
Divergent demographic and regional growth: Drivers aged 66 and older represent the fastest-growing group of policy shoppers for 14 straight quarters, while states like New York (+13%) and New Jersey (+12.5%) lead regional shopping spikes.
__________________________________________________________
Nearly half of U.S. auto policies were shopped in the past year, according to new LexisNexis data.
Consumers continue to shop aggressively for auto insurance, with 47.2% of policies-in-force having been shopped at least once during the previous 12 months, according to the latest LexisNexis U.S. Insurance Demand Meter. While shopping growth slowed in the second quarter, it remained in what LexisNexis calls “warm” territory, with year-over-year shopping activity up 1.4%.
For used-car dealers, the bigger takeaway is what the numbers say about the cost-conscious consumer. Insurance has become a significant part of the monthly cost of owning a vehicle, and shoppers are clearly willing to look for a better deal. A customer considering a used vehicle may be weighing not just the payment and price, but also what it will cost to insure the car.
That could make insurance costs another factor influencing which vehicles shoppers consider. Two similarly priced used vehicles can carry very different insurance costs, particularly as consumers compare newer vehicles, luxury models and vehicles with different safety and repair profiles. For dealers, that is another piece of the affordability equation behind today's used-car purchase.
The data also shows some significant differences among consumers. Shoppers age 66 and older posted the strongest insurance-shopping growth for the 14th consecutive quarter, while New York and New Jersey recorded the highest state-level shopping growth in Q2, at 13% and 12.5%, respectively.
LexisNexis says insurance shopping is being driven by more than rate increases. Increased advertising and the growing convenience of digital shopping are also encouraging consumers to compare policies, suggesting that insurance shopping has become a more routine part of the vehicle-ownership experience.
Bottom Line
Used-car dealers don't control insurance rates, but they are selling into a market where the total cost of ownership matters more than ever. Persistent insurance shopping is another sign that consumers are looking closely at the ongoing cost of owning a vehicle—not simply the price on the windshield.
