Life events push drivers to shop and switch, new report notes
A new Verisk report found that the national personal auto insurance retention rate fell by 3.2% in 2024, signaling that consumers are increasingly leaving their insurers to seek more affordable coverage.
Companies that wait until the end of a policy to try to keep a customer are less likely to retain that policyholder, Verisk’s 2026 Personal Auto Insurance Retention Report found. More drivers now compare insurance options during their policy period, especially after major life events, such as moving, buying a car, or changes in family status.
The analysis was based on Verisk’s review of 154 million policy records from 2022 through 2025.
“Verisk’s auto retention analysis underscores how the hard market has driven more consumers to shop, making it increasingly important for carriers to understand not just who is likely to churn, but why,” said Firestone. “One of the most notable findings is the consistency across carriers, where midterm policy changes, especially those closer to renewal, serve as clear signals of shopping intent and help insurers gauge both the likelihood of churn and the urgency to act.”
Verisk found that more than 11% of policies had a midterm change, like adding or changing a vehicle. The report says those changes increasingly predict whether a policyholder stays or goes.
Policies with even a single midterm change were 5% less likely to renew than those that didn’t have changes, according to the report. And the more changes drivers make to their policies, the more likely they are to not renew. Two or more changes per month cut renewal rates even further (by 9%), and changes just before renewal increased departures by 12%.
The numbers indicate that many drivers start shopping after big household or vehicle changes.
“These events frequently trigger reconsideration of price and coverage,” the report noted.
While the Verisk report is focused almost solely on the insurance industry, there are inherent messages for consumers suggesting they can leverage a company’s eagerness to retain customers to their advantage.
“Insurance carriers are focused on retaining customers,” said Firestone. “When looking to discuss policy pricing, customers can contact their current insurer to learn about various programs, coverages, and discounts that may be available.”
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