Customers’ Search for Better Auto Rates Has UBI Heating Up

Customers shopped for auto insurance at a record pace in 2025 as years of insurance rate hikes got buyers looking around. And this time, they are finding better prices elsewhere, according to J.D. Power.

The percentage of customers who shopped for auto insurance in 2025 was 57%, up from 49% in 2024. About 30% of them switched insurers.

Also, nearly half of buyers are making purchases online. And according to the J.D. Power 2025 U.S. Auto Insurance Study, customers who begin their interaction with an insurer through an app are more likely to to say the experience was seamless than buyers using the phone or an agent.

“The better digital experience customers have with their insurer, the more likely they are to keep using digital channels,” said J.D. Power. “When customers have an excellent digital experience, 92% say they definitely will use digital channels in the future.”

Of the trends to watch in 2026, J.D. Power said usage-based insurance is gaining steam again. Just 17% of insurers offered UBI programs to shoppers, but it is becoming increasingly important to shoppers looking to save money. However, insurers are still trying to “get the UBI formula right.”

What seems clear is that collecting data via a mobile app is preferred by insurers but this method has the worst satisfaction with customers, who seem to prefer data collected by vehicle systems or onboard computers, or a device installed in the vehicle.

“UBI is often used to entice customers to save money on their premiums, and with so many customers shopping their policies, this is an easy way to offer a reduced price. But customers will only find this attractive if they trust the data that is collected. Done properly, insurers can use UBI to bring down premiums, attract and retain clientele and build loyalty in the process,” J.D. Power said.