Digital Disconnect: More Insurance Customers Buy Online, but Like It Less

More Americans are buying their insurance online, but many aren’t loving the process.

For the first time, customers buy almost half (47%) of new auto and home insurance policies in the U.S. online, according to the most recent J.D. Power U.S. Insurance Digital Experience Study. But broader use of digital tools and falling car insurance premiums across the country don’t signal happier consumers. Instead, the study found overall satisfaction has fallen.

The findings come at an important time for insurers. After years of sharp premium increases that led many people to shop around, auto and home insurance rates in some areas are starting to level off or even drop a little. This has led more consumers to compare coverage options online. Still, the study finds that many insurer websites are struggling to provide clear pricing, coverage details, and easy navigation that customers want.

“As insurance prices have started to come down nationwide, a massive volume of active customers and new prospects are comparison shopping and hunting for information on insurer websites and mobile apps,” said Eric McCready, director of digital solutions at J.D. Power, in a press release.

Customer satisfaction numbers on the decline

Overall satisfaction scores in the study’s service segment, which measures how existing customers can manage their policies online, dropped by four points from last year, going from 699 to 695 out of 1,000. The shopping segment, which looks at how people compare and buy new coverage, fell even more, dropping 12 points from 535 to 523.

As insurers rely more on digital channels to attract and keep customers, these numbers show a clear decline. Many users reported having trouble finding information or completing tasks quickly on insurer websites, which lowered overall satisfaction scores.

“Some insurers have embraced this digital transformation by building well-thought-out, easy-to-navigate digital properties,” said McCready. “But many are still struggling to deliver the right mix of information and resources customers can use to get the information they need.”

The study suggests that insurers may be missing a chance to build stronger relationships with customers through digital channels. As more services move online to cut costs, websites and apps are becoming the primary channels insurers use to connect with policyholders.

“Websites and apps have become a core component of the insurance customer journey,” said Justin Suter, director of market engagement and thought leadership at Corporate Insight, which collaborated with J.D. Power on the study. “As people start using AI tools for insurance information and even quote comparisons, insurers need to get their digital formulas right to support the new ways in which customers look for information.”

The report also highlights a disconnect between insurers’ investments in artificial intelligence tools and actual customer usage. While the report found chatbots and virtual assistants improve the digital shopping experience, only 11% of customers interacted with them.

The importance of online comparison tools

Just one-third of insurance shoppers used online tools to compare prices across competing brands, and only 27% found features for side-by-side comparisons of different policy options within the same insurer, according to the study. Conversely, 28% of shoppers reported finding no price comparison features at all.

The report shows that customers who use price comparison tools are almost twice as likely to consider buying a policy (39%) as those who don’t (21%).

Industry researchers have long maintained that consumers prefer digital interactions when insurer websites work well. But satisfaction drops quickly when customers encounter confusing navigation, missing information, or inconsistent experiences across desktop and mobile platforms.

“Customers clearly prioritize savings, but they also care about speed and clarity when buying a policy,” said Matt Brannon, senior economic analyst at Insurify. “Shopping online is more immediate than calling an insurer. Insurer websites and insurance comparison platforms can often quote customers in less than five or 10 minutes. Plus, shopping online with comparison sites lets customers see a range of quotes at once, giving them more confidence that they’re getting a good deal.”

About the study

The J.D. Power U.S. Insurance Digital Experience Study evaluated desktop and mobile experiences across categories, including design, information, system performance, quoting tools, and functionality. More than 11,500 customer evaluations conducted between January and March 2026 served as the basis for the study.

Among insurers evaluated in the study, Amica ranked highest in the service segment, with a score of 730 on a 1,000-point scale. Nationwide ranked No. 2, followed by GEICO. In the shopping segment, National General ranked highest, followed by AAA and Erie Insurance.

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