Auto Insurance Shopping Stayed Above Prior-Year Levels In Early 2026
TransUnion’s latest Insurance Personal Lines Trends and Perspectives report says personal auto insurance shopping remained elevated in early 2026, even as average auto rate filings turned negative during the first quarter and carriers moved into a more competitive market posture.
According to the report, auto shopping activity was 7.5% above prior-year levels through the first quarter of 2026, based on three-week moving averages. Property shopping also remained above prior-year levels, rising 5.8% on the same basis.
The report said competitive intensity is rising most visibly in personal auto, while property carriers remain more conservative because of continued risk in catastrophe-exposed markets.
Average auto rate filings moved into negative territory in January, February and March, according to data cited by TransUnion. The report listed average auto rate filings of -2.21% in January, -1.57% in February and -0.25% in March.
TransUnion said it remains to be seen whether that downward rate trend will continue and translate into new business growth. The report also noted a concern that higher policy volume could eventually push the market back toward a harder cycle if loss ratios rise over time.
Liability Trends Remain A Watch Point
While premium growth for both physical damage and liability coverages has outpaced increases in losses since early 2023, TransUnion said liability losses began rising in early 2025 and ended the third quarter of 2025 on a slightly upward trajectory.
The report said insurers should maintain “heightened vigilance” over emerging trends, with a particular focus on liability exposure.
For agents and carriers in Massachusetts and the broader Northeast, the regional point in the report is more directional than state-specific. TransUnion said consumers in Gen Z, consumers in northeastern states, and consumers with lower credit-based insurance scores continue to be among the most active shoppers.
The report also said rate activity in the Northeast is tapering off, with shopping expected eventually to normalize relative to other regions.
Renters Become A Longer-Term Personal Lines Opportunity
A second major theme in the report is the changing profile of renters.
TransUnion said delayed homeownership is extending the rental phase for younger consumers and creating a larger group of longer-term renters. The report said a recent TransUnion study found 47% of renters are under age 40, compared with 15% of homeowners.
The report also said the median age of first-time homebuyers rose from 33 in 2019 to 40 in 2024, a shift TransUnion characterized as a structural delay in the transition from renting to owning.
That trend matters for personal lines because renters are becoming more established insurance consumers, according to the report. TransUnion described renters as increasingly older, with stronger credit profiles and higher incomes. The report said the median renter in TransUnion’s renter consortium dataset is now 40 years old, with an estimated household income of $56,000 and a score of 652 under a TransUnion proprietary scoring model.
Although renters policies generally generate lower premiums than homeowners policies, TransUnion said renters may represent a larger long-term opportunity than carriers have traditionally recognized.
The report said longer-term renters may have broader insurance needs as they build assets, form families and accumulate more complex personal risk profiles. TransUnion identified potential demand for more comprehensive coverage options involving personal property, additional living expenses, cyber protection, life insurance and liability.
Property Shopping Also Remained Elevated
Property shopping activity was 5.8% above prior-year levels in early 2026, according to TransUnion.
The report said the profile of active property shoppers resembles the profile of active auto shoppers: consumers with lower credit-based insurance scores, consumers in the Northeast, and Gen Z consumers.
TransUnion said the largest share of renters resides in the Northeast and West, where higher-cost cities are common. That provides a regional connection for New England insurance professionals, although the report does not provide Massachusetts-specific shopping data.
Small-Business Formation Points To Commercial Lines Demand
The report also included a commercial insurance section focused on new-business formation and the small-business sector.
TransUnion said the 2026 commercial insurance market is positioned for relative stability after several years of market fluctuation, though it said headwinds remain. The report said commercial auto is expected to remain unprofitable at least through 2027, tempering the broader stabilization expected in the market.
The report cited inflationary pressure in construction and medical costs, cyber exposure, skilled labor shortages and increasingly complex regulatory environments as issues carriers continue to navigate.
New business applications remained strong in 2025, exceeding 5.6 million for the year, according to Census Bureau data cited by TransUnion. The report said that represented an average of more than 1.4 million applications per quarter.
TransUnion also noted that nearly 84% of all businesses are non-employer businesses, which are typically individually owned entities or partnerships. The report said those businesses often include first-time commercial insurance buyers who are digital-first and price-sensitive.
For carriers and agencies, the report said this growing population of small commercial buyers creates pressure to modernize acquisition, underwriting and engagement strategies while maintaining underwriting discipline.
Report Offers Market Direction, Not Massachusetts-Specific Data
For Massachusetts insurance professionals, the report is most useful as a directional view of national and regional personal-lines trends rather than a Massachusetts-specific market study.
The report provides a discussion of active insurance shopping among consumers in northeastern states, tapering rate activity in the Northeast, and the larger renter population in high-cost regions. The report’s principal market signals are that personal auto competition is increasing, liability trends remain a concern, renters may represent a larger long-term personal lines opportunity, and small-business formation continues to create commercial insurance demand.
Free Industry Report
The full “Q2 2026 Insurance Personal Lines Trends and Perspectives” report includes detailed year-over-year shopping data and breakdowns of shopper credit segments. It is available for free from TransUnion at the following link:
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company that facilitates trust by providing an actionable picture of consumers. Within the insurance industry, their business interest lies in providing proprietary scoring models, market analytics, and consumer datasets to help carriers and agencies modernize their underwriting, acquisition, and retention strategies.
