More than a third of U.S. auto insurance customers are not very satisfied, according to J.D. Power’s latest study
High-value customers show the lowest renewal intentions despite their long loyalty
Seamless, service-focused experiences now key to insurer success in a post-rate-hike era
After years of grappling with profitability challenges, America’s auto insurers are back in the black. But the hard-won turnaround, documented in the newly released 2025 J.D. Power U.S. Auto Insurance Study, finds the industry facing a new challenge: re-earning customer loyalty after years of rate hikes and market exits.
The study reveals that 38% of auto insurance customers are currently not very satisfied with their provider. This dissatisfaction poses a significant threat to insurers, particularly as they pivot from defensive strategies to growth-oriented ones focused on retention and loyalty.
“Now that insurers are shifting back into growth mode, they really need to focus on cultivating and keeping high-value customers,” said Stephen Crewdson, managing director at J.D. Power. “But among many of those customers, overall satisfaction this year is not particularly high.”
High-value customers most likely to defect
One of the study’s more surprising findings is that customers with the highest lifetime value—those who pay more, hold multiple policies, and have been loyal over time—are among the least likely to renew. Only 51% of these customers say they “definitely will” renew with their current insurer, a rate even lower than that of mid- and low-value customers.
While competitive pricing is the top reason new customers choose a provider, the study notes that excellent service and a positive claims experience are the biggest factors influencing renewal decisions.
Seamless experience and trust take center stage
A consistent experience across channels—phone, digital, in-person—is now the most important factor in overall satisfaction. Insurers who deliver seamless interactions see major gains in trust and ease-of-doing-business ratings, according to the report.
The study evaluated satisfaction across seven dimensions: trust, price, customer interactions, ease of business, coverage offerings, problem resolution, and digital experience. It also spotlighted top-performing insurers by region, with Amica (New England, 735), NJM Insurance Co. (Mid-Atlantic, 721), and Erie Insurance (North Central and Southeast) earning the highest scores.
Winners by region and in usage-based insurance
Top regional performers include:
California: Auto Club of Southern CA (AAA) – 676
New England: Amica – 735
Mid-Atlantic: NJM Insurance Co. – 721
Southeast: Erie Insurance – 718
Usage-Based Insurance (UBI): Nationwide – 698
Nationwide also led in Texas and the UBI category, marking a strong showing in tech-enabled insurance models.
A critical inflection point
Now in its 26th year, the J.D. Power U.S. Auto Insurance Study drew from responses by over 48,000 customers across the U.S. between May 2024 and April 2025. Its findings suggest that while insurers have weathered recent storms, long-term success depends on shifting from a rate-focused survival mode to service-led growth.
For auto insurers eager to retain premium customers and grow market share, the message is clear: trust, seamless service, and communication are more valuable than ever.