Auto Insurance Shoppers Demand AI Tools as Quote-Gathering Accelerates
Auto insurance customers are shopping more aggressively than ever, pulling an average of 3.5 quotes per search - the highest volume JD Power has recorded in its research history. The surge reflects a fundamental shift: mobile apps and AI tools are making it easier for consumers to compare coverage options and understand trade-offs.
JD Power's 2026 U.S. Insurance Shopping Study, conducted from January 2025 through January 2026, found that 53% of consumers are actively shopping for auto insurance policies. While this represents a decline from 57% the previous year, it remains well above historical norms.
The research reveals a market in transition. Stephen Crewdson, managing director of insurance intelligence at JD Power, said the industry is "moving from a crisis-driven market to a digital- and AI-driven market." Rate pressure is easing, yet customers continue requesting more quotes than before because digital tools simplify the comparison process.
Consumers are downloading multiple carrier apps to shop around, and 48% of auto policy purchases now occur digitally. The volume of customers who bought policies jumped 36% since 2021.
AI Shapes Confidence and Switching Behavior
Shoppers who use AI during their insurance search are more likely to switch providers and express greater confidence in their decisions, according to separate JD Power research. The data suggests AI is explaining coverage options 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," Crewdson said.
Usage-Based and Embedded Insurance Gain Ground
Usage-based insurance programs are expanding. Thirty percent of recent shoppers and 34% of new policy buyers are enrolled in UBI programs, with 44% of recent shoppers calling UBI an important factor in their purchasing decision.
Embedded insurance - policies sold directly through vehicle dealers or manufacturers - is attracting younger customers. Thirty-six percent of shoppers, particularly those under 40, expressed interest in purchasing embedded coverage.
For insurance professionals, the implications are clear: customers expect AI-powered shopping experiences, and those who deliver transparent, easy-to-use digital tools will capture market share. Learn more about AI for Insurance and AI for Customer Support to understand how these technologies are reshaping customer interactions.
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