Auto insurance customers want AI shopping tools: JD Power

Auto insurance customers are shopping at elevated rates, with AI and digital tools fueling this activity.

According to JD Power's 2026 U.S. Insurance Shopping Study, fielded between January 2025 and January 2026, the rate at which consumers are shopping for auto insurance policies dropped from 57% to 53% year-over-year, but remains high compared to historical averages.

The study also reports that customers are receiving quotes at an unprecedented rate. On average, shoppers get an average of 3.5 quotes — the highest volume in the history of JD Power's research — as they shift preferences more towards mobile apps and AI tools.

The trend coincides with a drop in the rate at which prices are rising, said Stephen Crewdson, managing director of insurance intelligence at JD Power, in the press release

"We're moving from a crisis-driven market to a digital‑ and AI‑driven market," Crewdson said. "Even as rate pressure eases, customers are getting more quotes than ever because mobile apps and AI tools make it so much easier to compare options and understand coverage."

Consumers are also downloading multiple insurance-carrier apps just to shop for different auto policy rates, according to the study. The volume of customers who purchased auto policies is up 36% from 2021, with 48% of purchases completed digitally. 

"Separate JD Power research indicates that shoppers who use AI during their insurance journey are more likely to switch insurers and feel more confident in their choices — a sign that AI is likely explaining coverage options and trade‑offs 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," said Crewdson.

According to the study, usage-based insurance (UBI) and embedded insurance policies are growing among customers: 30% of recent shoppers and 34% new policy buyers are currently enrolled in a UBI program, and 44% of all customers who have recently shopped say that UBI is an important factor in their decision-making. The study also found that 36% of shoppers, especially those of younger generations, are interested in purchasing an embedded insurance option sold directly through the vehicle dealer or manufacturer.