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Is Now a Good Time to Switch Insurance? Record Numbers of Drivers Switched in 2026 — Here's How to Tell If You Should

Updated 2026-11-10 · reviewed by a licensed agent

For a lot of people, yes — and the data says more people than ever have figured that out. In the third quarter of 2026, 5.1% of auto policyholders switched carriers, the highest quarterly rate ever recorded, with August hitting an all-time monthly high of 5.3%, according to J.D. Power's quarterly report with TransUnion. Homeowners shopping reached 7.7%, the highest level in that report's history. The reason isn't panic; it's that insurance companies stopped raising rates in lockstep. When some carriers cut while others raise, the gap between your current price and the best available price gets wider, and shopping pays off more often. It still isn't right for everyone — a fresh ticket or an open claim can make staying put the smarter move.

What does the new switching data actually show?

Shopping leveled off; switching hit a record. That combination means the people who shopped found something worth moving for.

The longer trend is just as telling. Auto shopping averaged 13.1% in 2026 through the third quarter, up from 11.4% in 2021, and average switching rose from 3.4% to 4.6% over the same period — about a third more people changing carriers than five years ago. The median annual premium among drivers who switched in the quarter was more than $3,300.

And yet the biggest number is the quiet one: roughly 87% of drivers didn't shop at all in a record quarter.

Why are so many people switching right now?

Because rates are diverging, not just rising.

• Carriers are moving in opposite directions. In the second quarter of 2026, about 36% of auto rate filings were decreases, 38% were increases, and 27% were rate-neutral, per S&P Global data cited by LexisNexis Risk Solutions. Two years ago nearly everyone was filing increases at once, so shopping mostly confirmed that everything cost more. Now your carrier might be raising rates while a competitor is cutting them.
• Home insurance has the same split. After years of double-digit increases, property reinsurance costs fell sharply at the mid-2026 renewals, and carriers are passing that through unevenly. Why your Tennessee home insurance went up — and why 2026 is different walks through it.
• People remember the last renewal shock. Households that absorbed several years of double-digit increases are now checking whether that price still makes sense.
• Shopping got easier. Comparison tools and, since September 2026, AI shopping assistants built into consumer apps make it simpler to gather quotes. The catch, as one comparison-site executive put it: "A quote without its context is not a fair comparison."

In Tennessee, the stakes are higher than average on the home side — Tennessee homeowners pay among the highest premiums in the country — so the same percentage spread between carriers is more dollars here.

Should you shop your insurance right now?

Check where you are before you start collecting quotes.

Timing matters most on the auto side. A new carrier always pulls your driving record; your current carrier may not re-check it every renewal. That's why the day a ticket ages off is often the best day of the year to shop, and why shopping the week a ticket posts can lock in the worst quote. How often carriers really check your record, and how much a ticket raises rates, are covered separately.

How do you shop without making it worse?

1. Start from your declarations page. Every quote should match your current liability limits, deductibles and endorsements, so you're comparing price, not coverage cuts.
2. Watch the home deductible. Many Tennessee carriers now apply a percentage wind/hail deductible. A quote that's $300 cheaper with a 2% wind/hail deductible on a $500,000 house can cost you $10,000 at claim time.
3. Know what you'd give up. Accident forgiveness, a vanishing deductible, a loyalty or claims-free credit — ask what your current carrier is actually giving you before you leave it.
4. Price the household, not one policy. The best structure is sometimes one carrier for everything and sometimes two, coordinated. Price both.
5. Be exact on every application. Report every driver, ticket and claim. A quote built on a missing ticket gets re-rated at binding, or worse, at claim time.
6. Never cancel first. Bind the new policy, then cancel the old one effective the same day. Here's the step-by-step for switching without a gap.

How often should you shop insurance?

Glance at every renewal; compare in earnest every year or two, or right away when something changes. The triggers that justify a full comparison: an increase you can't explain, a move, a new or departing driver, a paid-off vehicle, a ticket aging off, a new rental property or boat, or a roof replacement. Comparing more often than that rarely helps, and switching every six months can cost you the tenure credits some carriers reward.

The real reason switching pays more in 2026

When every carrier raised rates together, shopping was mostly a way to confirm the bad news. Now that carriers are diverging, the same household can get meaningfully different prices for the same coverage — and the only way to find out where you sit is to compare. The point isn't to switch for its own sake. It's to know whether you should.

Start a quote with Lumenbo and we'll match you with one licensed local independent agency — their agent compares your current coverage against the carriers they represent, tells you plainly if staying put is the better deal, and handles the switch without a gap if it isn't. More straight answers in the Learning Library.

Sources: J.D. Power, Signals Intelligence for Personal Lines Insurance Quarterly Report, Q3 2026, developed with TransUnion (released October 2026), as reported by ProgramBusiness and Insurance Business; LexisNexis Risk Solutions, U.S. Insurance Demand Meter (August 2026), citing S&P Global Market Intelligence rate-revision data. Informational only — not a quote or a recommendation to change insurers.

What is Lumenbo? Lumenbo is an insurance matching platform that connects people with one licensed local independent agency — and the software those agencies run on. Lumenbo is not an insurance carrier and not an insurance agency. Your Lumenbo-matched agent is a licensed agent at that partner agency, and they stay your point of contact.

Frequently asked

Is now a good time to switch car insurance?
For many drivers, yes. In the third quarter of 2026, 5.1% of auto policyholders switched carriers — the highest quarterly rate on record, with a single-month high of 5.3% in August, according to J.D. Power and TransUnion. The reason is that carriers are no longer moving rates together: in the second quarter of 2026, about 36% of auto rate filings were decreases and 38% were increases. When carriers diverge, the spread between quotes widens and shopping pays more often.

How many people are switching insurance in 2026?
J.D. Power and TransUnion's Q3 2026 report found 13.2% of auto policyholders shopped and 5.1% switched in the quarter, both the switching rate and August's 5.3% monthly figure being records. For homeowners insurance, 7.7% shopped — the highest in the report's series — and 3.0% switched, with August reaching a series-high 3.2%.

How often should I shop my insurance?
Look hard at every renewal, and do a full comparison at least every year or two — sooner after a rate increase you can't explain, a move, a new driver, a paid-off car, or a ticket aging off your record. Most people don't: even in a record quarter, roughly 87% of drivers didn't shop at all.

Will shopping for insurance hurt my credit?
No. Insurance quotes use a soft inquiry for credit-based insurance scores, which doesn't affect your credit score. What shopping does do is pull your driving and claims history, which is why timing around a recent ticket or claim matters more than the quotes themselves.

When should I not switch insurance?
When a fresh ticket or at-fault claim has just posted to your record and your current rate is still reasonable, in the middle of an open claim, or when switching would cost you an accident-forgiveness benefit, a large multi-policy discount, or a long claims-free credit that a new carrier won't match. In those cases, waiting until the violation ages off or the claim closes is often cheaper.

Is it worth switching insurance to save a little money?
Only if the coverage is the same or better. The most common switching mistake is comparing a lower price on a policy with higher deductibles, lower liability limits, or missing endorsements. Compare against your current declarations page line by line; a cheaper policy with a hole in it isn't a savings.

Can I switch insurance in the middle of my policy?
Yes. You can change carriers at any time, not only at renewal. Bind the new policy first, cancel the old one effective the same day, and most carriers refund the unused premium. Some charge a short-rate fee for mid-term cancellation, so ask before you cancel.

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This article is general information for education, not insurance advice or a quote. Coverage, availability, and rules vary by insurer and by state.