Auto and Home Insurance Consumers Getting Used to Using AI: JD Power

“Just as we’ve seen with the internet and mobile apps, AI is rapidly becoming a critical conduit to key policy shopping, research and account management decisions among auto and home insurance customers,” said Tony Soloman, director, insurance intelligence at JD Power.

Soloman was commenting on JD Power’s latest insurance study that found nearly one-third (29%) of auto and home insurance customers are using artificial intelligence (AI) tools to research products and coverage, service their accounts, understand coverage before submitting a claim or shop for a quote or new policy.

The new AI Insurance Experience Study concludes that AI-provided guidance is having an impact on decision-making. More than one-third (37%) of customers who used AI to research products or coverage options changed their policy based on the information they received. Among those who used AI to shop for a new policy, 42% purchased a policy as a result.

Consumers are using AI tools provided by insurers as well as third party websites or apps. As expected, younger customers are more likely to trust the technology.

Challenge and Opportunity

According to Soloman, the emergence of AI represents a challenge and opportunity for insurers.

“First, the tools they provide on their websites and mobile apps need to deliver a comprehensive, helpful user experience,” he said. “In addition, insurers need to recognize that many customers are using third-party AI chatbots and apps to conduct research and compare policies, so it is critical to stay on top of how their data and content are being ingested and interpreted by the major large language models.”

Although AI use is on the rise, JD Power found that a majority of insurance customers are still not using AI, with the most common reasons given for choosing not to use AI being a lack of familiarity, habit and lack of trust in the results.

“It’s still relatively early in the evolution of insurance-specific AI tools developed by insurers to help their customers understand complex concepts, manage their accounts and compare coverage options, but these tools are on their way to becoming some of the most important investments insurers will make during the next several years,” said Eric McCready, director of digital solutions at JD Power.

Last November in another survey conducted by J.D. Power, customers said they did not see a personal benefit in using AI for major decisions versus smaller, nuts-and-bolts interactions.

The JD Power AI Insurance Experience Study is based on 8,352 customer evaluations across 24 insurance brands and eight third-party AI tools and was fielded from June through July 2026.

Traction and Reaction

This latest JD Power study reflects that AI is gaining traction in the industry.

In February, the national digital insurance agency Insurify launched a ChatGPT app to allow consumers to compare and shop for car insurance. In May, Liberty Mutual launched a conversational AI auto insurance quoting application. Also, homeowners can now obtain insurance quotes from Plymouth Rock Home Assurance through a “natural” conversation with ChatGPT.

The AI-tracking platform Evident pointed out that similar activity from Allstate, Aviva, and AXA suggests insurers are preparing for a future in which AI shapes discovery, comparison, and purchasing.

Within a week of its launch, Insurify said its AI-powered technology had served more than 196 million quotes and generated $200 billion in total coverage for auto, home, pet, and renters insurance. The news caused a momentary drop in S&P 500 Insurance index over apparent concerns of what AI means for insurance agents brokers.

In an interview with Insurance Journal, Insurify CEO Snejina Zacharia characterized that as an over-reaction. “Nobody would have predicted it—that what we thought was a tiny announcement would cause such an impact in the industry,” Zacharia said. “I don’t think it’s going to be a disruption. It will be an evolution. I think that everything will just become more automated and simpler, but a lot of the existing interfaces will remain and the existing relationships will continue to remain. People that want to choose a personal experience with their agent or brokers will be doing that.”

As reported by Insurance Journal’s Andrea Wells, BofA Global Research believes that at least $15 billion of independent agency commissions and broker fees —those considered “low complexity”—are at risk for some disintermediation by AI. The analysts estimate in total U.S. independent agency commissions/broker fees were in excess of $100 billion in 2025.

Writing in Insurance Journal (Viewpoint: Why AI Will Redefine Independent Agency Performance), Bob Bondi, CEO of Renaissance, a network of independent insurance agencies, expressed the belief that rather than signaling erosion of the independent agent’s value, the reaction to Insurify’s AI highlighted the urgency for agents to stay current and responsive.

“Independent agents will not win by drifting toward commoditized, transactional business.” Bondi wrote. “They will win by leaning deeper into their advisory role, using intelligent tools to enhance insight, speed, and service while preserving the human judgment and trust that remain irreplaceable.”