Auto Insurance Shopping Trends: The Rise of Online Policies and AI

As of 2026, nearly half of the new auto insurance policies in the United States are purchased online, highlighting a significant shift toward digital transactions in the insurance market. According to the J.D. Power 2026 U.S. Insurance Shopping Study, online purchases account for 48% of all new policies, up from 36% five years prior. Consumers retrieved an average of 3.5 quotes, the highest engagement level recorded in the study's 20-year history, illustrating a trend of consumers independently seeking rates instead of relying on brokers.

While overall shopping activity dipped slightly, as the percentage of customers seeking auto coverage dropped to 53% from 57% the previous year, it remains historically high. Supporting this data, a report from LexisNexis Risk Solutions indicates a slowdown in shopping growth to 3.2% in early 2026. Nonetheless, the annual rate of 47.3% marks a historic record. In response, insurance carriers adjusted by reducing prices by an average of 1.1% in that quarter.

Impact of Digital Tools and AI on Insurance Shopping

Stephen Crewdson, managing director of insurance intelligence at J.D. Power, observes the industry's evolution from a crisis-impacted market to one driven by digital solutions and artificial intelligence. These advancements enable consumers to conveniently compare policies and understand coverage options. J.D. Power's findings further reveal that consumers using AI are more likely to switch insurers, underscoring the need for clarity in digital and AI-driven consumer interactions.

Despite the demand for such tools, many insurers are not fully utilizing them; customers were nearly twice as likely to consider purchasing when comparison tools were offered. However, only about one-third of customers encountered these tools, and 28% reported having no access to such resources.

Trends in Policy Prices and Customer Preferences

Price remains the main factor driving auto insurance purchases. Among active shoppers, 45% held homeowners policies, yet only a few received quotes for both types while seeking auto insurance. Crewdson highlights that uncompetitive auto quotes generally discourage additional policy bundles. Additionally, usage-based insurance, which leverages telematics data for premiums based on driving habits, sees increases, with adoption rising to 30% among recent shoppers and 34% among those switching insurers.

Regional variations in shopping and switching rates exist, with higher activity in states like Oklahoma, Mississippi, and Texas, while New England states demonstrate more customer loyalty and lower premiums. In the competitive landscape of large auto insurers, Erie Insurance retained its top position for purchase experience, followed by Nationwide and Allstate.