Toronto, Ontario -- Auto insurance companies are seeing a major shift as more and more consumers turn to online policy comparison tools.
According to the 2025 U.S. insurance digital experience study, 57 percent of auto insurance customers have actively searched for new policies in the past year — the highest rate ever recorded by the firm. Almost half, or 47 percent, of these shoppers now purchase their policies through digital channels, surpassing traditional methods like agents (35 percent) and call centres (17 percent) .
This surge in online policy shopping underscores the critical importance of insurers' digital interfaces.
"The primary communications conduit customers now have with their auto insurer is a website or an app, so that’s really ramped up pressure on insurers to put their best foot forward on digital properties," said Eric McCready, director of digital solutions at J.D. Power.
The study found significant disparities in user experiences across different insurers' digital platforms. For instance, customer satisfaction scores for quoting functions varied widely, with top-performing insurers scoring 539 out of 1,000, while lower-performing ones averaged 453.
The study also highlights the correlation between positive digital experiences and continued use of online channels. Customers who rated their digital experience highly (scores of 801 or above) were 92 percent likely to continue using digital channels in the future. In contrast, only 40 percent of those with poor experiences (scores of 500 or less) expressed the same intent.
“Across both shopping and servicing functions, delivering a seamless digital experience is a win-win for insurers,” said Justin Suter, a research manager at Corporate Insight.
“Customers have shown that they want to interact with their insurers digitally, and when insurers deliver a good experience, they tend to stay on the digital channel, which delivers a better all-around experience at a lower administrative cost for the insurer.”
