TransUnion's latest report finds that 38% of consumers who shopped for insurance over the past six months switched their carriers. Shopping rates in Q3 jumped for auto insurance by 19% and property insurance by 16%, according to the 2025 Personal and Commercial Lines Annual Insurance Outlook, when compared to 2023.
Consumers who shopped for insurance but could not find better deals often lowered premiums by increasing deductibles or joining a telematics program.
"It's important to note that consumers are also switching at significant rates," said Patrick Foy, senior director of strategic planning for TransUnion's Insurance business, in the news release. "This should serve as a reminder to insurers that marketing and digital experiences matter for acquisition."
The report also notes that marketing spending and digitization is increasing, as well. Some insurers are investing in television and social media marketing, while others are focusing on their own digital channels to sell policies, as well as manage claims and customer service.
"The focus on marketing through digital channels is encouraging, but it has to be optimized with a robust identity-based approach," said Foy. "It is critical that insurers partner with a trusted solution provider that who can ensure that their ads consistently target the right audiences and measure impact across channels."
TransUnion also notes generational differences, specifically in auto shopping: Baby Boomers shopped the most at 34%, followed by Gen Z at 23%, Gen X at 18% and 8% for Millennials. However, personal lines auto insurance profitability is on the rebound, according to the report, and premiums are now rising past the growth of auto-related costs.
"Repair costs are rising as newer vehicles have more sophisticated parts, and labor shortages are driving up repair times and expenses. Insurers might vertically integrate and employ their own repair technicians to handle sophisticated claims more cost-effectively than third-party shops," said Stothard Deal, vice president of insurance market planning at TransUnion, in the report.
The housing market and labor or material costs continue to impact the personal property insurance market. Though the rate of increasing inflation has slowed, TransUnion notes that insurers are "still reeling from a wave of natural disasters that's starting to look like the new normal." The increase in property insurance shopping was seen across generations and in both homeowners and renters. Compared to 15 years ago, young adults are more likely to be living with their parents than Millennials would have at the same age. Older adults are also more likely to live with their adult children, according to the TransUnion Consumer Household Composition Study. In 2009, 66% of households had a young adult Millennial living with another person of an older generation. Today, 78% of households have an adult-aged Gen Z living with a person of an older generation.
The report reveals that high housing costs are the main reason that multi-generational households are becoming more common, which TransUnion notes could mean higher potential for undisclosed vehicle drivers or higher exposure to non-weather related perils like fire or water damage.
