J.D. Power 2025 Study Highlights Shift to Buyer's Market in Auto Insurance

The 2025 U.S. Auto Insurance Study by J.D. Power reveals a shift in the auto insurance market toward a buyer's market as insurers move from raising rates to focusing on acquiring and retaining high-value customers. After several years of rate increases, insurers have returned to profitability and are emphasizing improving customer satisfaction and loyalty. Despite this positive market shift, 38% of auto insurance customers report low satisfaction, indicating that insurers face challenges in enhancing the customer experience.

The study highlights the importance of delivering a tailored and seamless customer experience across all channels to improve satisfaction among high-value clients. Key satisfaction factors in the study include trust, price, ease of doing business, product offerings, problem resolution, and digital engagement. Usage-based insurance (UBI) is also analyzed as a distinct category, assessing how diagnostics and product features affect user experience.

With over 48,000 customer responses from May 2024 to April 2025, J.D. Power's comprehensive survey covers 11 geographic regions in the U.S. and offers insights into market trends and consumer expectations. Insurers are encouraged to balance competitive pricing with enhanced service delivery to capture customer loyalty in this evolving market environment.

The study marks the 26th year of this annual research, reinforcing its role as a crucial benchmark for industry stakeholders looking to gauge customer sentiment and adjust strategies accordingly. The insights provided underscore the ongoing significance of digital channels and problem resolution in shaping customer satisfaction.