TransUnion’s latest Q3 2025 Personal Lines Trends and Perspectives report reveals a significant acceleration in insurance shopping activity across both auto and property lines, with auto insurance shopping surging 17.6% year-over-year and property insurance shopping up 9.2%. The report, based on TransUnion’s internal shopping data and consumer surveys, provides critical insights into evolving market dynamics that are reshaping competitive strategies across the personal lines landscape. The report is available for free from TransUnion by clicking on this link.
Shopping Activity Surges Across Personal Lines
The first half of 2025 demonstrated sustained elevated shopping activity that extends well beyond typical seasonal fluctuations. Auto insurance shopping increased 15% compared to the same period in 2024, with shopping activity achieving a near-term peak in March before remaining elevated through April. Property insurance shopping patterns have shown remarkable consistency throughout the reporting period, maintaining the 9.2% year-over-year elevation across the first half of 2025.
Renter insurance presents a contrasting picture with more modest 2.9% growth, reflecting the relative ease of switching within this segment compared to the more complex underwriting and coverage considerations associated with homeowner policies.
Risk Profile Analysis of Active Shoppers
TransUnion’s breakdown of shopping activity by credit-based insurance scores reveals that higher-risk customers are driving much of the increased market activity. Consumers with credit-based insurance scores in the 300-500 range are shopping at significantly higher rates than their higher-score counterparts, creating a dynamic where traditionally price-sensitive customers are actively seeking alternatives in greater numbers. (Note: Massachusetts, by statute, bans the use of credit scores for auto insurance. See M.G.L. c. 175, § 4E)
The report segments shopping behavior across three primary credit score ranges: 300-500, 501-700, and 701+. The data shows that while all segments experienced increased shopping activity, the lower credit score segments demonstrated the most pronounced increases, particularly in homeowner insurance, where consumers with lower credit-based insurance scores showed marked increases during Q2 2025.
This risk profile shift creates complex market dynamics where carriers face pressure from customers who are traditionally more price-elastic and often present higher volatility in pricing and availability.
Crossline Shopping Pressures and Industry Response
TransUnion identifies emerging cross-line pressures that complicate traditional retention strategies. Many consumers who bundle auto and property policies are shopping to secure lower rates for both lines combined, creating situations where rising homeowner insurance premiums influence auto insurance shopping decisions.
The competitive response has been swift and substantial. TransUnion reports a 22.9% year-over-year increase in marketing spending during Q1 2025, with carriers shifting strategic focus from traditional television advertising toward video content and direct mail campaigns. Marketing strategies are increasingly emphasizing specialty lines, including motorcycle insurance, pet insurance, identity theft protection, and recreational vehicle coverage.
The surge in marketing spending creates additional challenges as carriers navigate increased customer acquisition costs while managing retention pressures from long-tenured customers who are entering the market due to aggressive rate increases.
Consumer Behavior and Loyalty Patterns
TransUnion’s consumer survey research reveals trends that may affect carrier retention strategies. The study found that 42% of auto insurance shoppers switched insurers within the past year, with 25% of those switchers having remained with their previous insurer for more than six years. Gen X and Baby Boomer customers represent the largest share of this loyal yet departing customer segment.
TransUnion’s research indicates that today’s consumers are benchmarking their insurance experiences against digital leaders like Uber and Amazon rather than comparing carriers solely against other insurance companies. This shift suggests that traditional retention approaches, including standard pre-renewal phone calls, may be insufficient to maintain customer relationships in the current market environment.
TransUnion’s Data Quality Research Findings
The report highlights TransUnion’s 2022 case study involving 2.4 million consumer records to demonstrate the critical importance of data quality in marketing effectiveness. Using just two consumer characteristics (phone number and email), the study achieved identity enrichment exceeding 75% phone and email coverage.
The documented performance improvements were substantial: $1 million in annual direct mail cost reductions, $5 million in additional revenue generation, and up to 3.6x improvement in return per advertising dollar when using refined targeting approaches. TransUnion’s analysis suggests that pairing two selection criteria can increase return per advertising dollar by up to 3.6x compared to less refined targeting methods.
These findings support TransUnion’s position that carriers should prioritize data quality and identity resolution before embarking on marketing campaigns, particularly as artificial intelligence and machine learning initiatives require clean data foundations.
Economic and Market Context for H2 2025
The broader economic environment provides essential context for the sustained shopping activity. The United States experienced its first GDP decline in three years, while unemployment has remained steady, with positive job growth continuing for 52 consecutive months.
Vehicle market dynamics are creating additional pressures on consumers’ total cost of ownership. Average monthly car loan payments have reached $759 for new vehicles and $526 for used vehicles, representing a combined 27% increase since 2021. Vehicle maintenance and insurance costs are rising at approximately twice the rate of the Consumer Price Index compared to five years ago.
Housing market conditions present mixed signals. While mortgage originations increased in Q4 2024, they remain historically low. The market has shifted toward first-time homebuyers, with an 8.8% increase in this segment between the start and end of 2024. Rising home values continue to increase insured asset values, creating ongoing needs for accurate coverage assessment.
Industry Implications and Forward-Looking Analysis
TransUnion’s analysis suggests that the second half of 2025 will present continued complexity for personal lines carriers. The auto insurance market is expected to maintain its strategic focus on balancing marketing investments with retention initiatives, while property insurance markets face ongoing challenges around rate adequacy, new business eligibility, and underwriting standards.
The sustained nature of shopping activity suggests that competitive pressures will continue throughout 2025, requiring carriers to balance new business growth objectives with retention investments. TransUnion’s research indicates that more sophisticated targeting approaches and data-driven customer engagement strategies may become competitive necessities rather than strategic advantages.
Conclusion
TransUnion’s Q3 2025 Personal Lines Trends and Perspectives report documents significant shifts in consumer shopping behavior that extend beyond typical market cycles. The sustained elevation in shopping activity across both auto and property lines, combined with the concentration of activity among higher-risk customer segments, creates complex challenges for carrier retention and acquisition strategies.
For Massachusetts P&C insurance professionals, these national trends may provide context for tailored local market strategies and competitive positioning as the industry adapts to evolving consumer expectations and economic pressures.
