Auto insurance customers are increasingly using AI tools to compare coverage, and those shoppers are more likely to switch insurers.
Overall customer satisfaction with auto insurers remained flat in 2026 despite modest improvements in pricing satisfaction.
Insurers continue to struggle with seamless customer service, particularly when customers must switch between communication channels to resolve issues.
Lately, car insurance has been a pain point for consumers. It’s gotten more expensive, and sometimes harder to acquire.
However, AI-powered shopping is reshaping the auto insurance market as customers gain more leverage in a softening market, according to the J.D. Power 2026 U.S. Auto Insurance Study.
While rising premiums that plagued drivers in recent years have begun to ease, insurers face a new challenge: meeting growing customer expectations for seamless service across digital and traditional channels.
“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 still say their interactions aren’t seamless — especially when they must switch channels to resolve a single inquiry.”
The annual study found overall customer satisfaction with auto insurers remained unchanged from last year at 644 on a 1,000-point scale. Satisfaction with pricing improved slightly, however, as fewer consumers experienced insurer-initiated rate increases and more reported receiving discounts and useful policy information.
Customers who saw their premiums increase reported significantly lower satisfaction, with price satisfaction scores dropping 155 points compared with policyholders whose rates remained stable or declined.
AI becomes a shopping tool
Separate J.D. Power data shows nearly one-third (32%) of auto insurance shoppers now use artificial intelligence tools during their search for coverage. Consumers most often use AI to answer general insurance questions, compare policies, obtain quotes, and assist with purchasing decisions.
The trend appears to be influencing market competition. According to the study, shoppers who use AI are more than 1.3 times more likely to switch insurers than those who do not.
At the same time, one-third of AI users said the information they received was not helpful, suggesting consumers are still experimenting with the technology while seeking clearer explanations of coverage options.
The findings indicate that customers increasingly turn to AI when insurers fail to provide information in an easily understandable format.
Channel switching remains a frustration
Despite ongoing investments in digital tools, insurers continue to struggle when customers must move between communication channels to resolve a problem.
Nearly half (46%) of customers interacted with their insurer through multiple channels during the past year. Satisfaction remained relatively stable when consumers used several channels for different purposes. Problems emerged when customers were forced to switch channels to resolve a single inquiry.
About 21% of customers reported such a cross-channel experience, which was associated with lower satisfaction and reduced renewal intentions.
Agents proved to be the most effective at resolving these issues, successfully resolving 91% of inquiries once involved. By contrast, resolution rates were lowest when customers were directed to company websites, where only 66% of issues were resolved.
Policy understanding declines
The study also found that fewer drivers fully understand their auto insurance coverage. Only 58% of customers said they completely understand their policy and what it covers, down four percentage points from 2025.
That knowledge gap has 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.
Regional winners
J.D. Power ranked insurers across 11 geographic regions and in the usage-based insurance category.
Top performers included Wawanesa in California, Shelter Insurance in the Central region, Erie Insurance in the Mid-Atlantic, North Central and Southeast regions, and Amica in New England.
Travelers led New York, State Farm ranked highest in the Northwest, CSAA Insurance Group (AAA) topped the Southwest, and Automobile Club of Southern California (AAA) led Texas.
Nationwide earned the highest score among usage-based insurance providers for the third consecutive year.
The 2026 study is based on responses from 52,216 auto insurance customers collected between April 2025 and April 2026. Customer satisfaction was measured across seven dimensions: trust, price for coverage, people, ease of doing business, product and coverage offerings, problem resolution, and digital channels.