Nearly one-third of auto insurance shoppers now use artificial intelligence tools to compare coverage and obtain quotes, according to the J.D. Power 2026 U.S. Auto Insurance Study. This shift gives consumers an advantage in a softening market, forcing carriers to prioritize customer experience as overall satisfaction remains flat at 644 on a 1,000-point scale.
AI tools change shopping behavior
The annual study found that 32 percent of auto insurance shoppers use artificial intelligence during their search for coverage. These consumers typically use AI for Insurance to answer general questions, compare policies, and assist with purchasing decisions. Shoppers who use these tools are more than 1.3 times more likely to switch insurers than those who do not.
However, one-third of AI users reported the information they received was not helpful. This suggests consumers are still testing the technology while seeking clearer explanations of coverage options.
Channel switching frustrates customers
"The market has clearly shifted from a pricing crisis to an experience challenge," said Stephen Crewdson, managing director of insurance business intelligence at J.D. Power. Rates are stabilizing, but many customers report friction when they must switch communication channels to resolve a single inquiry.
Nearly half of customers interacted with their insurer through multiple channels during the past year. Problems emerged when customers were forced to switch channels to resolve a single issue. This occurred for 21 percent of customers and resulted in lower satisfaction and reduced renewal intentions.
Agents proved most effective at resolving these issues, successfully handling 91 percent of inquiries once involved. Resolution rates were lowest when customers were directed to company websites, where only 66 percent of issues were resolved. Carriers investing in AI for Customer Support must ensure these tools prevent policyholders from bouncing between platforms to get a single question answered.
Policy understanding declines
The study also found that fewer drivers fully understand their auto insurance coverage. Only 58 percent of customers said they completely understand their policy and what it covers, down four percentage points from 2025.
This knowledge gap carries significant consequences. Customers who fully understand their policies reported satisfaction levels 127 points higher than those who do not. They were also more likely to renew coverage, recommend their insurer, and avoid shopping for a new policy. Policy understanding had the strongest effect on perceptions of price, boosting satisfaction with coverage costs by 141 points.
Why this matters for insurance professionals
Insurance professionals must recognize that artificial intelligence is accelerating customer churn, not just simplifying research. When consumers use these tools to compare policies, they are more likely to leave if their current carrier fails to provide clear, easily understandable information. Improving policy clarity and ensuring consistent resolution across all communication channels will be necessary to retain customers in a market where rates are stabilizing but experience expectations are rising.
Your membership also unlocks:
