Americans are increasingly buying car insurance on a screen rather than over the phone or in an agent's office. The shift is redrawing how insurers win and keep customers, and it’s not good news for brokers.
Nearly half of new auto insurance policies are now bought online, according to the latest JD Power 2026 U.S. Insurance Shopping Study. Digital purchases climbed to 48% of new policies, up from 36% five years ago.
Customers are also pulling more quotes than ever – finding rates themselves rather than through brokers - at an average of 3.5, the most in the study's 20-year history. They are doing so even as the rate increases that drove them to shop begin to ease. The share of customers shopping for auto coverage slipped to 53% from 57% year over year, though it remains high by historical standards.
A LexisNexis Risk Solutions report tracked the same cooling. Its US Insurance Demand Meter showed shopping growth easing to 3.2% in the first quarter of 2026, though the annual shop rate still hit a record 47.3%. Carriers also began cutting prices, down 1.1% on aggregate for the quarter.
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." Apps and AI tools, he said, make it easier to compare options and understand coverage.
Separate JD Power research found that shoppers who use AI are more likely to switch insurers. Crewdson said the contest now centers on how clearly insurers can show up in digital and AI-driven interactions.
Many insurers are not showing up well, a related JD Power study found. Shoppers were nearly twice as likely to consider buying when comparison tools were offered, 39% versus 21%. Yet only about a third saw tools comparing competing brands, and 28% saw none at all.
Price still decides much of what follows. Among active auto shoppers, 45% hold a homeowners’ policy, but only 20% received a homeowners quote while shopping for auto.
Most customers shop only their auto policy, Crewdson said, and an uncompetitive quote ends the conversation: "the door usually closes on any chance to bundle additional policies."
Usage-based insurance, which sets rates from telematics on driving and mileage, is used by 20% of customers. It reaches 30% of recent shoppers and 34% of those buying from a new insurer, and 44% of recent shoppers call it important to their decision.
Another 36% expressed interest in embedded insurance sold through dealers or manufacturers, with stronger interest among younger buyers.
Behavior varies sharply by region. Southern states such as Oklahoma, Mississippi, and Texas remain high-shopping, high-switching markets. New England states, meanwhile, such as New Hampshire and Vermont show more loyalty and lower premiums.
Erie Insurance ranked highest among large auto insurers for purchase experience for a third straight year, scoring 719. Nationwide followed at 715, and Allstate at 685.
The study drew on 12,437 customers who sought an auto quote in the prior six months, fielded from January 2025 through January 2026.
