More drivers are shopping for new car insurance due to rate increases

Insurance rates are increasing, but vehicle owners aren’t sitting still waiting for the situation to change. A new study from LexisNexis showed that more people are shopping around for car insurance, switching companies to save money and get better coverage options.

The study showed that more than 40 percent of insured drivers had shopped for a new policy in 2023, up almost 5 percent from the year before. Insurers spent less on advertising, which could have played a role, but the main driving force is that people want to save money, and they are not hesitant to make a move when they find something better.

This situation presents some challenges for insurance companies, even the ones that are taking on more customers than they lose. There are more multi-generational households as families move in together to save money. That has driven up the number of drivers on each policy while reducing the number of new policies. Beyond the potential lost revenue, insurers could miss risk factors for people in multi-driver households.