Auto insurance policy shopping has reached an all-time high, with 57% of customers actively seeking new coverage within the past year, according to the latest study from J.D. Power.
This trend is increasing pressure on insurers to deliver more effective digital experiences, as nearly half (47%) of those shoppers now purchase policies through websites or mobile apps.
Customer satisfaction with quoting functions highlights a major divide. Among the top-performing insurers, satisfaction in quoting averages 539 on a 1,000-point scale, while among the lowest performers, it averages 453.
The report also found a strong link between digital experience quality and future digital engagement. When customers reported an overall satisfaction score of 801 or higher, 92% said they would continue using digital channels. Conversely, when satisfaction scores were 500 or lower, only 40% said they would remain on digital platforms.
Another factor impacting satisfaction is multifactor authentication. Customers expressed higher satisfaction levels with desktop and mobile websites when this security feature was present, indicating that data security remains a priority.
Digital channels now lead over traditional methods for purchasing policies. The study found that 47% of customers buy through digital platforms, compared with 35% through agents and 17% via call centers.
In the service segment, Nationwide ranked highest with a score of 730. Amica followed with 724, while American Family and Progressive tied for third at 715. In the shopping segment, Amica and Erie Insurance ranked highest, both scoring 559. American Family placed third with 556.
In 2024, the national average cost for full coverage car insurance rose to $2,543 annually, marking a 26% increase from $2,014 in 2023. This upward trend is attributed to factors such as inflation, supply chain disruptions, and increased vehicle repair costs.
Additionally, the incorporation of advanced technologies in newer vehicles has led to higher repair expenses, further driving up premiums.
The National Association of Insurance Commissioners (NAIC) reported that, as of March 2025, private passenger auto insurance accounted for approximately $344 billion in direct premiums written, representing about 35% of all written premiums.
Looking ahead, Insurify projects a 5% increase in car insurance costs for 2025, potentially raising the national average to $2,435. This continued trend could affect the digital insurance purchasing experience for policyholders.
Eric McCready (pictured), director of digital solutions at J.D. Power, said digital properties have become the main interface between auto insurers and customers.
“Some insurers are doing this much better than others,” McCready said. “Particularly in quoting new policies and comparing prices and coverages, the data shows a stark divide between top and bottom performers, which could have serious effects on new business growth during this period of heightened shopping activity.”
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