Report: Auto Insurer Websites and Apps Become Battleground for New Customers

More than half (57 percent) of auto insurance customers have actively shopped for a new policy in the past year, and that’s putting more pressure than ever on digital channels, which have become the primary tool through which customers purchase insurance.
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More than half of the consumers shopping for new auto insurance are doing so online. // Stock photo

More than half (57 percent) of auto insurance customers have actively shopped for a new policy in the past year, and that’s putting more pressure than ever on digital channels, which have become the primary tool through which customers purchase insurance.

That is one of the findings in the Troy-based J.D. Power 2025 U.S. Insurance Digital Experience Study released today.

Although 57 percent, the highest shopping rate ever recorded by J.D. Power, are looking for insurance online and 47 percent of auto insurance shoppers now purchase their policies through digital channels, the experiences they are having on those websites and apps is uneven from one insurer to the next, according to the results of the survey.

“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,” says Eric McCready, director of digital solutions at J.D. Power.

“Some insurers are doing this much better than others. 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.”

The U.S. Insurance Digital Experience Study evaluates the digital consumer experiences of both property and casualty (P&C) insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. It also examines the functional aspects of the service and shopping experiences.

Service experience examination includes desktop web, mobile web and app in four factors: design; information; tools/capabilities; and system performance. Shopping experience examination includes desktop and mobile web in four factors: design; information; quoting; and system performance.

The study was conducted in collaboration with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.

“Across both shopping and servicing functions, delivering a seamless digital experience is a win-win for insurers,” says Justin Suter, 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.”

Following are some key findings of the 2025 study:

Digital becomes primary conduit to auto insurance buyers: Nearly half (47 percent) of all insurance policy buyers now purchase through digital channels, significantly more than through agents (35 percent) and more than double that of call centers (17 percent), putting enormous pressure on insurers to deliver a great first impression on their websites and apps during this period of heightened policy shopping activity.

Policy quote-related tasks expose variability of digital experiences: The largest gaps between top and bottom digital experiences occur in quote-related functions, such as requesting a quote and comparing prices and coverage. Customer satisfaction with quoting among the top-performing insurers is 539 (on a 1,000-point scale), while among the lowest-performing insurers satisfaction averages 453.

Great digital experiences beget more digital usage: The better the digital experience customers have with their auto insurer, the more likely they are to keep using digital channels. When customers have an excellent digital experience (overall satisfaction score of 801 or higher), 92 percent say they “definitely will” use digital channels in the future. When customers have a poor digital experience (overall satisfaction score of 500 or less), only 40 percent say they are likely to use digital channels in the future.

Multifactor authentication linked to customer satisfaction: Customer satisfaction with the auto insurance desktop website and mobile website is higher when multifactor authentication is required, underscoring the importance of perceived data security to auto insurance customers.

According to J.D. Power, Nationwide ranks highest in the service segment with a score of 730. Amica (724) ranks second. American Family (715) and Progressive (715) each rank third, in a tie.

See the rank charts for each segment here.

The U.S. Insurance Digital Experience Study was redesigned for 2025. Scores are not comparable with previous studies. The 2025 study is based on 11,529 evaluations taken between January through March 2025.

For more information about the U.S. Insurance Digital Experience Study, visit here.