In the Wake of Sky-High Insurance Rates, People Are Shopping Around

It’s not news that property and casualty insurance rates have been climbing for a while, and especially during the last few years. Since the pandemic, auto insurance rates in particular have been on a steep incline, with prices jumping about 50% since late 2019.

Homeowners insurance rates have not fared much better — and in some disaster-prone areas of the country (and even those out of zone), far worse.

What is news: Consumers’ latest reaction to the market: namely, shopping around for new policies and switching insurance carriers in record numbers.

As insurance rates finally cool, consumers shop and switch

According to the most recent Loyalty Indicator & Shopping Trends (LIST) report by J.D. Power, some 13.3% of auto insurance customers shopped for new policies in the fourth quarter of 2024 — a rate that ties with that from the second quarter of the same year for the highest in the report’s history. (J.D. Power began collating the data offered in the LIST reports in September 2020.)

In addition, some 4.2% of consumers switched, which is also a record figure tied with the second quarter of 2024.

The reason? After this most recent handful of "historic rate increases," as J.D. Power puts it, consumer interest in shopping and switching has built up. And now that rate increases are finally cooling in some markets, shoppers are finding success as they search for lower-cost policies.

According to ValuePenguin’s own analysis, shopping around for auto insurance can save customers as much as 77.7% , and an average of 56.3%. Shopping around for homeowners insurance, too, can unlock hundreds of dollars in yearly savings.

And if the LIST report is any indication, consumers seem to be aware of the opportunity. Along with the historic increases in auto insurance shopping, J.D. Power also notes that both homeowners and renters insurance policies also saw increased trends in shopping and switching throughout 2024.

How insurance shopping could help you save in 2025

Although auto insurance rate increases are cooling to some extent in some markets, they’re still expected to increase by 7.5% on average this year. That’s on top of a nationwide average premium of $175 per month for full coverage.

Meanwhile, the average cost of homeowners insurance in the United States hovers around $2,151 per year, or $179 per month. However, in some states, those figures are much higher.

Lowering your overall coverage is one way to decrease your costs. The minimum car insurance required by your state is likely to cost significantly less than the full-coverage premium mentioned above.

But it also means that you’ve got, well, less coverage — which could forecast financial catastrophe in the event your vehicle undergoes substantial unexpected damage.

If you’re like many Americans, your home is the most valuable asset you own — and your car might be a close second. If you’re a renter, your car may in fact be your highest-value possession.

Those assets are worth protecting. So rather than skimping on coverage, taking the time to shop around for homeowners, renters and auto insurance could help you save money — without taking unnecessary risks.

Besides — you’ll be in good company.