Auto Insurer Websites and Apps Become Battleground for New Customers as Policy Shopping Activity Skyrockets, J.D. Power Finds

Nationwide Ranks Highest in Service; Amica, Erie Insurance Rank Highest in a Tie in Shopping

TROY, Mich.--(BUSINESS WIRE)--
More than half (57%) of auto insurance customers have actively shopped for a new policy in the past year, the highest shopping rate ever recorded by J.D. Power, and that’s putting more pressure than ever on digital channels, which have become the primary tool through which customers purchase insurance. According to the J.D. Power 2025 U.S. Insurance Digital Experience Study,^SM released today, 47% of auto insurance shoppers now purchase their policies through digital channels, but the experiences they are having on those websites and apps is notably uneven from one insurer to the next.

“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. “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,” said 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%) of all insurance policy buyers now purchase through digital channels, significantly more than through agents (35%) and more than double that of call centers (17%), 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% 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% 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.

Study Rankings

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.

Amica and Erie Insurance rank highest in a tie in the shopping segment, each with a score of 559. American Family (556) ranks third.

See the rank charts for each segment at http://www.jdpower.com/pr-id/2025046.

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 and was fielded in from January through March 2025.

For more information about the U.S. Insurance Digital Experience Study, visit https://www.jdpower.com/business/insurance/us-insurance-digital-experience-study.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

View source version on businesswire.com: https://www.businesswire.com/news/home/20250514180557/en/

Media Relations Contacts

Geno Effler, J.D. Power; West Coast; 714-621-6224; media.relations@jdpa.com
John Roderick; East Coast; 631-584-2200; john@jroderick.com

Source: J.D. Power