08/15/2025
New study shows highest-ranking auto insurers and scores across U.S.
Source: aftermarket MATTERS
U.S. auto insurers have returned to profitability for the first time in years and that has them shifting from a focus on raising rates and exiting unprofitable markets to shoring up relationships with their highest-value customers.
According to the J.D. Power 2025 U.S. Auto Insurance Study, released on Tuesday, insurers will have challenges as they confront a marketplace in which 38% of customers are currently not “very satisfied.”
The 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.
Highest-ranking auto insurers and scores by region are as follows:
• California: Auto Club of Southern CA (AAA) for a second consecutive year
• Central: Shelter for a fifth consecutive year
• Florida: Allstate and GEICO in a tie
• Mid-Atlantic: NJM Insurance Co.
• New England: Amica for a second consecutive year
• New York: New York Central Mutual
• North Central: Erie Insurance for a fifth consecutive year
• Northwest: State Farm
• Southeast: Erie Insurance
• Southwest: CSAA Insurance Group (AAA) for a second consecutive year
• Texas: Nationwide
• Usage-Based Insurance (UBI): Nationwide for a second consecutive year
The following are some key findings of the 2025 study:
- More than one-third of customers not very satisfied: While overall customer satisfaction with auto insurers declines just 2 points to 644 (on a 1,000-point scale on the survey study) from a year ago, more than one-third (38%) of customers fall into the bottom segment of customer satisfaction scores, which makes them exceedingly less likely to renew their policies with their existing insurer and more likely to shop around for a better deal.
- Highest lifetime value customers at risk: Customers with higher overall lifetime value profiles, who have higher annual premiums, long tenure with their current insurer and multiple policies with that insurer also have the lowest likelihood to renew with their existing insurer. Just 51% of high-value lifetime customers say they “definitely will” renew with their insurer, which is lower than the medium-value lifetime customer (53%) and low-value lifetime customer (54%) segments.
- Price gets customers in the door, but good service keeps them: Good rates and low costs are the top reasons auto insurance customers cite for purchasing from an insurer, but when it comes to renewing an existing policy, good service and positive claims experience are the top drivers of client retention.
- Seamless cross-channel interactions drive customer experience: 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.