US Auto Insurance Demand Rises Amid Rate Reductions and Marketing Activations.

US consumer auto insurance shopping growth remains positive, with a 9.4% YoY increase in shopping rates and a 3.6% YoY growth in new policies. Highly populated states like New Jersey, Texas, California, and Florida dominate shopping volumes, while rate reductions and vehicle purchases spur shopping activity. Single-driver policies demonstrate the strongest shopping activity, outpacing multi-car policies. The direct channel and non-standard market drive Q2 shopping activity, with growth among existing policyholders outpacing uninsured shopping growth.

U.S. consumer auto insurance shopping growth continued to demonstrate resilience in the second quarter of 2025, according to the latest data from LexisNexis Risk Solutions (NYSE: RELX). The company's Insurance Demand Meter reported a significant 9.4% year-over-year (YoY) increase in shopping rates and a 3.6% YoY growth in new policies [1]. This growth is attributed to various factors, including rate reductions and increased vehicle purchases.

Highly populated states such as New Jersey, Texas, California, and Florida led the shopping volumes, with New Jersey recording a 33% growth rate, Texas at 17%, California at 16%, and Florida at 9% [1]. These states' significant consumer bases contribute to the overall market activity, driving the demand for auto insurance services.

Rate reductions among the top 25 auto insurers played a crucial role in sustaining higher new business activity. Approximately 40% of rate filings in Q2 2025 were reductions, averaging -4% [1]. This trend prompted consumers to shop and consider switching providers, contributing to the overall increase in shopping activity.

The direct channel and non-standard market continued to drive Q2 shopping activity, with a 22.8% YoY growth in the direct channel for the eighth consecutive quarter [2]. This growth is likely due to more insurers re-igniting their marketing engines and expanding risk tolerances. Additionally, growth among shoppers with existing policies (10.1%) outpaced uninsured shopping growth (7.6%), indicating that insurer outreach and targeted marketing campaigns are effectively prompting policyholders to reassess their insurance needs [2].

Single-driver policies demonstrated the strongest shopping activity, outpacing multi-car policies. This trend suggests a heightened emphasis on affordability, potentially driven by tightening household budgets or shifting consumer priorities among rate-conscious shoppers [2]. The number of consumers shopping for auto insurance while purchasing a new vehicle has increased by 9% since January 2022, further influencing the market dynamics [1].

The Insurance Demand Meter's latest results provide encouraging signals for LexisNexis' data analytics business. The record 46.5% of policies-in-force being shopped within the past 12 months represents the highest level since this metric began tracking in 2020 [1]. This indicates increased market reliance on LexisNexis' data services during a particularly active period in insurance markets.

For RELX investors, these metrics demonstrate how the company's Risk Solutions segment continues to leverage its data analytics capabilities to provide high-value market intelligence. The Insurance Demand Meter has become an established industry benchmark, enhancing RELX's position as a critical information provider in the insurance ecosystem during significant market shifts.

Looking ahead, more insurers are filing for rate decreases, a notable change after the previous two years dominated by rate hikes nationwide. If new trade deals take effect, they may counteract expected rate decreases and emerging signs of market stabilization, potentially reshaping expectations for the remainder of the year.

References
[1] https://www.stocktitan.net/news/RELX/lexis-nexis-u-s-insurance-demand-meter-consumer-auto-shopping-clocks-8szuc1d04nwq.html
[2] https://www.nasdaq.com/press-release/lexisnexisr-us-insurance-demand-meter-consumer-auto-shopping-clocks-hot-and-new