What J.D. Power’s 2026 U.S. Auto Insurance Study Means for You: Rates Stabilize While Customer Experience Lags

Study Methodology and Measurement

In its Auto Insurance Study, J.D. Power surveyed over 52,000 customers between April 2025 and April 2026. The company measured customer satisfaction across 11 U.S. regions and subcategories (including usage-based insurance).

J.D. Power assesses customer experience with providers across seven categories, using a “poor-to-perfect” 6-point scale for customer ratings:

• Level of trust
• Price for coverage
• People (staff and agent experience)
• Ease of doing business
• Product and coverage offerings
• Problem resolution
• Digital channels

Insurance customer satisfaction is driven by pricing transparency, streamlined communication channels, and policy clarity.

Price Satisfaction Increases Slightly

J.D. Power found that overall customer satisfaction did not change from 2025 to 2026, but satisfaction with price for coverage increased three points. Fewer customers reported premium increases outside of their control, which is a major level in overall satisfaction. In addition, more customers noted that they received several discounts and avoided payment fees.

Cross-Channel Interactions Lower Customer Satisfaction

The latest data from J.D. Power indicates that customers become frustrated when forced into cross-channel interactions to resolve an inquiry (for example, having to interact with the insurer both on the phone and through its website). Twenty-one percent of customers reported needing to switch channels for an inquiry along with a drop in perceived seamlessness.

Using multiple interaction channels isn’t necessarily an issue, but it lowers customer satisfaction when it’s required to resolve a single inquiry. This is especially true if the inquiry doesn’t get resolved.

Lack of Understanding Leads Customers to AI and Policy Switching

The percentage of customers who indicated that they fully understand their auto insurance policy was only 58 percent, down from 62 percent in 2025. Those who understand their policy are more satisfied with their coverage, on average, and are more likely to renew their coverage.

In addition, J.D. Power found that 32 percent of auto insurance shoppers used AI to help with their auto insurance search, including for general questions and to compare policies. Those who use AI are more than 1.3 times as likely to switch insurers.

Delivering Seamless Cross-Channel Interactions

According to J.D. Power’s 2026 report, customers hold more power in the auto insurance market as prices lower and competition between insurers increases. A major factor for lagging customer satisfaction ratings is insurance companies’ subpar cross-channel experience despite the fact that “a seamless cross-channel experience has become the single-most impactful driver of satisfaction in the study,” according to Stephen Crewdson, managing director at J.D. Power.¹

Whether insurers invest in improving this experience for customers remains to be seen, but those who manage to provide an excellent cross-channel experience will stand out and be better positioned to retain policyholders.

Bridging Information Gaps

As discussed above, another major theme from this year’s study was the growing use of AI among car insurance customers. Moving forward, insurers will need to adapt to how customers prefer to engage and bridge the knowledge gap to ensure policyholders understand their coverage options and what they’re paying for. “In a soft market, that friction will separate insurers that earn long-term loyalty from those that struggle to keep pace with rising expectations,” says Crewdson.

The study also includes the highest-ranking insurer for usage-based insurance, which considers factors like onboarding experience, app usability, and discounts for participation. Nationwide earned the top spot in this category for the third year in a row with a score of 711.. (The company offers two UBI programs: telematics program Nationwide SmartRide and pay-per-mile program Nationwide SmartMiles).

Smaller, regional insurers consistently rank highest in their regions. These include Wawanesa (California), Shelter (Central), Florida Farm Bureau (Florida), Amica (for New England), and Erie (for Mid-Atlantic, North Central, and Southeast). According to our research, regional insurers tend to offer lower-than-average premiums compared to the national average — especially if you have a clean record.

If you have multi-policy bundles, have been with your insurer for years, and pay higher premiums, you’re likely a high-value customer. This means you have the leverage to demand better service. Don’t hesitate to ask about car insurance discounts, priority support, and loyalty rewards.

If you’re dissatisfied, compare car insurance rates and switch providers. Online quotes make shopping quick and effective, and switching can result in savings of over $100 per year.