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Published on June 5, 2026
Nearly half of all new auto insurance policies in the United States are now purchased online, according to the J.D. Power 2026 U.S. Insurance Shopping Study, marking a significant shift in how consumers find and buy coverage.
Digital purchases reached 48% of new policies, up from 36% five years ago. Shoppers also pulled an average of 3.5 quotes, the highest number recorded in the study’s 20-year history, with consumers increasingly finding rates on their own rather than through brokers.
Overall shopping activity eased slightly, with the share of customers actively shopping for auto coverage dipping to 53% from 57% year over year. However, that figure remains elevated by historical standards. A separate LexisNexis Risk Solutions report confirmed the same trend, with its U.S. Insurance Demand Meter showing shopping growth slowing to 3.2% in the first quarter of 2026, though the annual shop rate still hit a record 47.3%. Carriers cut prices by an aggregate 1.1% during that quarter.
Stephen Crewdson, managing director of insurance intelligence at J.D. Power, said the industry is moving from a crisis-driven market to one shaped by digital tools and artificial intelligence. Apps and AI tools, he said, make it easier for consumers to compare options and understand coverage.
Separate J.D. Power research found that shoppers who use AI are more likely to switch insurers. Crewdson said competition now centers on how clearly insurers present themselves in digital and AI-driven interactions.
Many carriers are falling short. Shoppers were nearly twice as likely to consider purchasing when comparison tools were offered, at 39% versus 21%. Yet only about a third of shoppers encountered tools comparing competing brands, and 28% saw no comparison tools at all.
Price continues to serve as the primary gateway into the purchase process. Among active auto shoppers, 45% also hold a homeowners policy, but only 20% received a homeowners quote while shopping for auto coverage. Crewdson noted that an uncompetitive auto quote typically closes the door on any chance to bundle additional policies.
Usage-based insurance, which relies on telematics to set rates based on driving behavior and mileage, is currently used by 20% of customers. Adoption climbs to 30% among recent shoppers and 34% among those who switched to a new insurer. Additionally, 44% of recent shoppers said it factored into their decision. Another 36% of recent shoppers expressed interest in embedded insurance sold through dealerships or manufacturers, with stronger interest among younger buyers.
Shopping and switching rates vary considerably by region. Southern states including Oklahoma, Mississippi and Texas show high shopping and switching activity. New England states such as New Hampshire and Vermont show stronger customer loyalty and lower premiums.
Among large auto insurers, Erie Insurance ranked highest in purchase experience for the third consecutive year, scoring 719 out of 1,000. Nationwide followed at 715, and Allstate came in at 685.
The J.D. Power study drew on responses from 12,437 customers who sought an auto quote in the prior six months, fielded from January 2025 through January 2026.
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