In 2025, shopping for auto insurance quotes is at record highs, but actual switching rates remain relatively flat—creating a nuanced landscape for loyalty versus switching.

• Shopping is Up, Switching is Steady:

  • Auto insurance shopping rates reached 14.1% in early 2025, up from the previous year, but the switching rate is just 4.1%—nearly unchanged.

  • Many consumers check quotes but ultimately stay with their current carrier, often due to inertia, perceived hassle, or loyalty discounts.

• • Staying loyal often means paying more. Insurers use price optimization—charging higher premiums to long-term customers who are less likely to shop around.

  • Loyalty programs may offer small perks, but these rarely offset the gradual price hikes loyal customers face.

  • A LendingTree survey found that 54% of policyholders didn’t seek additional quotes at renewal, and 81% who did shop still stuck with their existing insurer.

• Switching Brings Savings—But Not for Everyone:

  • Of those who switched, 92% saved money; 63% saved at least $100 annually, and 22% saved $200 or more.

  • The main reason for switching is price, not service or coverage.

  • However, switching too frequently can have drawbacks: you might lose out on accident forgiveness or loyalty-based perks, and some insurers may view frequent switchers as higher risk.

• • Gen Z and Millennials are least loyal, most likely to shop and switch, while Boomers are more likely to stay put.

  • Digital convenience and aggressive marketing are driving younger generations to switch more often.

•  Many users report switching every 2–5 years to maximize savings, with some seeing $1,000+ annual differences by moving to a new carrier.

•  Switching can sometimes lead to gaps in coverage or denial of certain benefits if you file a claim soon after changing providers. Always read the fine print and time your switch carefully.

2025 

•  With premiums up 45% since 2019, consumers are more price-sensitive and empowered than ever.

•  Insurers are ramping up digital tools and personalized pricing to retain customers, but the market is shifting toward consumer empowerment and fluid loyalty.

• Loyalty can cost you hundreds per year due to price optimization and incremental hikes.

• Switching, when done strategically, almost always saves money—especially if you compare at least three to five quotes and review coverage details.

• Review your policy annually, shop around, and don’t assume loyalty discounts outweigh the savings from switching. But be mindful of timing and potential loss of certain perks.

For most drivers in 2025, shopping and switching is the smart financial move—but do it with care and attention to detail for the best results