According to the JD Power 2026 U.S. Insurance Shopping Study, the share of customers shopping for auto insurance has declined from 57% to 53% year over year, but still remains elevated by historical standards. At the same time, shoppers are getting more quotes than ever and shifting decisively toward digital channels – including mobile apps and emerging AI tools – to compare, understand and purchase policies.
“We’re moving from a crisis-driven market to a digital and AI driven market,” said Stephen Crewdson, managing director, insurance intelligence at JD Power. “Even as rate pressure eases, customers are getting more quotes than ever because mobile apps and AI tools make it so much easier to compare options and understand coverage. Separate JD Power research indicates that shoppers who use AI during their insurance journey are more likely to switch insurers and feel more confident in their choices – a sign that AI is likely explaining coverage options and trade offs more clearly than traditional methods. The battleground now is how clearly and confidently insurers can show up in those digital spaces and AI driven interactions.”
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The study showed:
- Customers now receive an average of 3.5 quotes, the highest level in the study’s history, as it becomes easier to get quotes through digital channels like insurer mobile apps. Many customers are downloading apps from competing carriers just to shop rates, and nearly half (48%) of new auto policies are now purchased digitally (up from 36% just five years ago), making digital channels the new front door for insurers to bring new customers into the fold.
- Among recent customers who are actively shopping for an auto policy, 45% say they have a homeowners policy, but only 20% received a homeowners quote while shopping for auto insurance. “Most customers are only shopping their auto policy, and if the auto quote isn’t competitive, they don’t stick around to discuss home, life or other financial products. In practice, if an insurer can’t be competitive on auto, the door usually closes on any chance to bundle additional policies,” said Crewdson.
- Usage-based insurance (UBI) policies – which use telematics software to monitor an insured’s driving style and assign rates based on safety and mileage metrics¬ – are used by 20% of all customers. Moreover, 30% of recent shoppers and 34% of those buying from a new insurer are enrolled in UBI, indicating the UBI model is growing fastest among active switchers and new buyers. Overall, 44% of customers who recently shopped say UBI is important in their shopping process, underscoring its move into the mainstream. At the same time, just over one-third (36%) of recent shoppers say they are interested in buying embedded insurance that is sold directly through the automobile dealer or manufacturer, especially among younger generations.
To view the complete rankings, visit: http://www.jdpower.com/pr-id/2026033.
The JD Power U.S. Insurance Shopping Study, now in its 20th year, is based on responses from 12,437 insurance customers who requested an auto insurance price quote from at least one competitive insurer in the previous six months. The study was fielded from January 2025 through January 2026.
