2025 J.D. Power Auto Insurance Study Shows Shift to Customer Retention

U.S. auto insurers have regained profitability after several years focused on rate increases and market exits. With profits returning, carriers are now prioritizing retention and acquisition of high-value customers amidst a competitive marketplace where 38% of customers report low satisfaction. The 2025 J.D. Power U.S. Auto Insurance Study highlights the importance of tailored and seamless customer experiences across all channels to improve satisfaction levels.

The study evaluates customer satisfaction across 11 geographic regions and specific categories such as usage-based insurance (UBI). Top-ranking insurers vary by region, with notable repeat leaders including Auto Club of Southern CA (AAA) in California, Shelter in the Central region, and Amica in New England. In the UBI category, Nationwide retains the highest satisfaction scores.

Customer satisfaction is assessed in seven key dimensions ranked by importance: trust, price, agent interaction, ease of business, coverage options, problem resolution, and digital services. Data from over 48,000 auto insurance customers gathered between May 2024 and April 2025 inform the study’s comprehensive insights.

The return to a buyer's market marks a strategic shift from rate hikes to customer experience investment. Insurers face the challenge of not only maintaining profitability but also enhancing service to reduce dissatisfaction and churn. This shift underscores evolving market dynamics, with insurers focusing on personalized experiences and multi-channel engagement to secure long-term customer value.