More than a third of auto insurance policyholders say they’re unsatisfied with their companies

J.D. Power’s 2025 U.S. Auto Insurance Study shows that 38% of policyholders aren’t satisfied with their insurance companies, making them “exceedingly less likely” to renew their policies and more likely to shop around for a better deal.

The U.S. Auto Insurance Study, now in its 26th year, measures customer satisfaction with auto insurers based on performance in seven core dimensions on a poor-to-perfect rating scale. In order of importance, individual dimensions measured are: level of trust, price for coverage, people, ease of doing business, product/coverage offerings, problem resolution, and digital channels.

Customers who have higher annual premiums, long tenure with their current insurer, and multiple policies with that insurer are least likely to renew with their existing insurer, with 51% saying they “definitely will” renew.

Good rates and low cost are the top reasons auto insurance customers cite for purchasing, but when it comes to renewing an existing policy, good service and positive claims experience are the top drivers of client retention.

J.D. Power reported in May that, in the past year, 57% of auto insurance customers actively shopped for a new policy, which was the highest shopping rate ever recorded by the company.

“Now that insurers are shifting back into growth mode, they really need to focus on cultivating and keeping high-value customers,” said Stephen Crewdson, J.D. Power’s managing director of insurance business intelligence, in a press release. “But among many of those customers, overall satisfaction this year is not particularly high. To shift that perception after the past few years of significant rate increases, insurers need to focus on delivering a tailored, seamless customer experience across all channels.”

Overall customer satisfaction with auto insurers declined 2 points to 644 on a 1,000-point scale compared to 2024.

J.D. Power says a seamless experience across channels is the most important driver of overall satisfaction among auto insurance customers.

“When insurers deliver on this key performance indicator, customers are significantly more likely to have higher levels of trust in their insurer, feel better about the people they are working with, and feel like it is easy to work with their insurer,” the release states.

The annual study measures customer satisfaction with auto insurance in 11 geographic regions. A separate category addresses usage-based insurance (UBI), along with diagnostics that influence UBI participants’ experience with their insurer’s usage-based auto products.

This year’s highest-ranking auto insurers and scores by region are:

- California: Auto Club of Southern CA (AAA) (676) — second consecutive year
- Central: Shelter (673) — fifth consecutive year
- Florida: Allstate (660) and GEICO (660)
- Mid-Atlantic: NJM Insurance Co. (721)
- New England: Amica (735) — second consecutive year
- New York: New York Central Mutual (652)
- North Central: Erie Insurance (684) — fifth consecutive year
- Northwest: State Farm (648)
- Southeast: Erie Insurance (718)
- Southwest: CSAA Insurance Group (AAA) (676) — second consecutive year
- Texas: Nationwide (657)
- Usage-based insurance (UBI): Nationwide (698) — second consecutive year

This year’s study is based on responses from 48,121 auto insurance customers and was fielded from May 2024 through April 2025.

A record-high of 22 companies, including six of the largest U.S. auto insurers, received a grade of C- or lower from collision repairers on the 2025 “Insurer Report Card” for how well their claims practices help promote quality repairs and customer service.

None of the top 10 largest and best-known auto insurers received an overall grade higher than a C+, while more than 60 other insurers ranked higher.

According to S&P Global Market Intelligence, the U.S. private auto insurance sector continues to recover significantly from historically poor underwriting performance in 2022.

“Substantial rate increases have helped push the net combined ratio for private auto insurance to 95.3% in 2024, marking a decrease of nearly 17 percentage points from its peak of 112.2% in 2022,” the study states.

The industry’s aggregated P&C lines posted a net combined ratio of 96.5%, marking the best annual performance since 2013, when it was 96.2%, the study found. S&P Global says the figure represents a significant improvement from the previous year’s net combined ratio of 101.6%.