This article is based on a survey conducted by Modives. In this questionnaire, we asked insured drivers in the US about their ability to access their auto insurance online.
Consumers are getting more comfortable managing their insurance online, with 80% of respondents to a recent survey stating that they can easily access their coverage information digitally, either through saved credentials or login recovery.
This trend opens the door for auto providers to continue digitization of their F&I processes, including insurance and identity verification– saving time and improving the consumer experience. Similar to the rise of touchless payments following COVID, insurance has reached a new normal within the digital space.
Not only does data show that consumers can access their insurance online, but their choice in carriers indicates that many may prefer it. The top insurance companies used by respondents include State Farm, GEICO, Progressive, and Allstate. This ranking closely mirrors the list of the biggest auto insurance companies in 2024, with direct carriers like GEICO and Progressive gaining ground on incumbent leader and agent-focused State Farm.
These providers, which cover 71% of survey respondents, embody consumers’ growing digital preferences. Digital-first providers are built on the idea that managing your insurance online is easily accessible to consumers and reduces costs to increase savings on coverage. Additionally, State Farm, while founded on brick-and-mortar operations, is improving on the digital side, being named a leader in digital experience by Corporate Insight.
The transition to digital insurance is reshaping traditional practices in the industry. While motorists were previously required to keep a physical insurance card in their glove box, that’s no longer the case. As of now, all states accept electronic auto insurance cards as proof of insurance at traffic stops, with the exception of New Mexico.
For auto dealers and lenders, this could mean that it’s time to adjust their processes when it comes to insurance. In the traditional flow of reviewing a customer’s coverage, the sales rep or F&I manager collects the customer’s ID card or insurance declaration page, which the driver typically needs to retrieve from their car. Then, the sales rep may photocopy the document, take it into their back office, and call the provider to confirm the policy details.
From there, they’ll review the documents one more time to ensure that it meets the requirements of the dealership and the state. All in all, this process may take anywhere from 15 to 30 minutes, and because they’re handling personally identifiable information, F&I departments may be violating FTC data protection regulations.
With 80% of drivers able to access their auto insurance online, the groundwork is laid for dealerships to streamline the verification process with digitization. “We’re at a critical point in the evolution of auto insurance,” says Frederick Waite, Modives CEO and insurance veteran. “Modern solutions are transforming the way we conduct verification, and early adopters are seeing major gains in efficiency and customer experience. For those who are hanging back to observe, there’s a real risk of getting left behind.”
As for companies holding out for older generations, it may be time to rethink that strategy. The survey found that even among respondents ages 54 and older, online insurance access rates remain at 80%. As Gen Z becomes a greater proportion of clientele over the next few years, embracing digitization across your business will become table stakes for a smooth customer experience.
