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Last updated: August 28, 2025
What J.D. Power’s 2025 U.S. Auto Insurance Study Means for You: Insurers Want to Retain High-Value Customers
How new industry data is reshaping service, rates, and retention strategies for America’s auto insurance consumers.
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The J.D. Power 2025 U.S. Auto Insurance Study offers a view of how insurers are responding to the highest switching rates seen in two decades. The study asked over 48,000 auto insurance customers across 11 regions about customer satisfaction. Keep reading to find out about what you can do to get the most out of your car insurance.
Key Takeaways
- The 2025 J.D. Power Auto Insurance Study reveals that high-value customers now have the power to demand more from insurers as satisfaction rates dip and more customers switch providers.
- Insurers are working to enhance claims experiences, digital tools, and reward programs to keep you on board.
- The market favors shoppers, so shop around, compare and don’t be afraid to switch.
- Regional and usage-based insurers may offer better service than large national brands. Review satisfaction rankings for your area and consider switching to a regional or usage-based provider.
PRO TIP
Get the most out of your car insurance by knowing which companies are better for you, depending on your driver profile. For example, GEICO tends to offer lower rates for drivers with minor traffic violations like speeding tickets — which is why it’s one of our top choices for best cheap car insurance.
Breaking Down the 2025 J.D. Power Auto Insurance Study
Study Methodology and Measurement
In its Auto Insurance Study, J.D. Power surveyed over 48,000 customers between May 2024 and April 2025. The company measured customer satisfaction across 11 U.S. regions and subcategories (including usage-based insurance). J.D. Power also introduced a new “poor-to-perfect” 6-point scale for customer ratings, so scores are not directly comparable to previous years.
J.D. Power assesses customer experience with providers across seven categories:
- Level of trust
- Price for coverage
- People (staff and agent experience)
- Ease of doing business
- Product and coverage offerings
- Problem resolution
- Digital channels
Major Findings: Satisfaction, Switching, and Retention
Lower Satisfaction and More Policyholders Switching
The latest data from J.D. Power points to less satisfied customers overall. Of all customers interviewed, 38 percent fell into the lowest satisfaction segment.
Only 51 percent of high-value customers (who have higher premiums, long tenure, and multiple policies with their provider) said they “definitely will” renew their policy. That’s lower than the number of customers who gave the same answer in medium-value (53 percent) and low-value (54 percent) groups.
PRO TIP
If you’re satisfied with your premiums and service, sticking with the same provider loyalty discounts may pay off in the long run. Some companies, like USAA and American Family, offer loyalty and generational discounts.
New Strategies to Keep Auto Insurance Customers
Insurers feel the pressure to keep customers from switching to competitors, especially as loyal, high-value clients are more likely to shop elsewhere. Companies’ tactics include slowing premium hikes — rates climbed just 2 percent by the end of 2024. That’s a major decrease, compared to a 13 percent jump early last year.
How Insurers Are Responding in 2025
Prioritizing High-Value Clients
If you’re a high-value client, you can expect your provider to offer customized service, rapid claims support, and loyalty rewards to keep you signed on. Stephen Crewdson, managing director at J.D. Power, says, “Insurers need to focus on delivering a tailored, seamless customer experience across all channels” to keep valuable customers.1
Customers say that good rates motivate them to switch, but positive service and claims experiences convince them to stay with the same insurer. Easy digital interactions on apps, websites, and claim filings increase trust and retention. Insurers are investing in online platforms, usage-based policies, and smoother claims processes.
Usage-Based Insurance and Regional Rankings
The study also includes usage-based insurer rankings, with satisfaction factors like onboarding experience, app usability, and discounts for participation. Nationwide leads the usage-based insurance category with a score of 698, placing at the top for the second year in a row. (The company offers two UBI programs: telematics program Nationwide SmartRide and pay-per-mile program Nationwide SmartMiles).
Smaller, regional insurers consistently rank highest in their regions. These include Amica (for New England), NJM (for the Mid-Atlantic), Erie (for Southeast and North Central), and Shelter (Central). According to our research, regional insurers tend to offer lower-than-average premiums compared to the national average — especially if you have a clean record.
What This Means If You’re Shopping for Car Insurance
If you have multi-policy bundles, have been with your insurer for years, and pay higher premiums, you’re likely a high-value customer. This means you have the leverage to demand better service. Don’t hesitate to ask about car insurance discounts, priority support, and loyalty rewards.
If you’re dissatisfied, compare car insurance rates and switch providers. Online quotes make shopping quick and effective, and switching can result in savings of over $100 per year.
FYI
If you have a young driver in your family, shop around to find the best car insurance for teens. Although drivers under the age of 25 usually pay more for insurance, rates decrease over time as long as they demonstrate safe driving.
Comparing Top Insurers’ Retention Strategies
| Insurer | Customer Retention Strategy | Usage-Based Program | Digital Experience | Notable Features |
|---|---|---|---|---|
| Nationwide | VIP focus, top usage-based insurance satisfaction | Yes | High | #1 usage-based insurance for customer satisfaction |
| Amica | Proactive claims, strong customer focus | No | Moderate | Stellar customer/claims satisfaction nationally; highest New England region score |
| NJM | Multi-policy perks, agent education | No | Moderate | #1 in Mid-Atlantic |
| Erie | Loyalty outreach, competitive bundle offers | No | Moderate | #1 in Southeast and North Central regions |
| Shelter | Concierge service, retention outreach | No | Moderate | #1 in Central region for five years |
TIP
Review your policy regularly and compare at least three providers. Ask about incentives—insurers want to retain you now more than ever.
Frequently Asked Questions
What is the J.D. Power 2025 Auto Insurance Study, and why does it matter?
It’s an annual survey of more than 48,000 U.S. auto insurance customers, measuring satisfaction, rates, and retention trends across regions and insurers. It’s widely used by consumers to evaluate their options and by insurers to develop better products and services.
Am I a high-value customer, and do I get special treatment?
Typically, high-value customers have high annual premiums, longer tenure, and multi-policy bundles. If you fit this profile, you can expect extra perks and better service. Ask your provider about loyalty programs and priority support.
If I’m not satisfied with my car insurance, should I switch providers?
Yes — 2025 is a buyer’s market for auto insurance. With more options and slow rate increases, switching is easier and often results in savings and improved service. Use online comparison tools for the best results.
Which insurers score the highest in customer satisfaction?
Regional insurers like Amica, NJM, Erie, and Shelter top satisfaction rankings in their areas, while Nationwide leads in usage-based insurance. Consult the full study and rankings for your state or region to find the best fit.
Senior Staff Writer
Jacqueline Quach holds years of experience in content writing, blogging, and copywriting, and has a professional background in user experience design, helping clients and businesses develop their content strategy. Jacqueline writes for multiple brands and websites, empowering customers in their purchase process through content. She also contributes to Savings.com and has written for Angi and SeniorLiving.org. Her work has been featured on MSN.com and Dayspa Magazine. Jacqueline holds a B.A. in Communication Studies from the University of California, Los Angeles.
Citations
2025 U.S. Auto Insurance Study. J.D. Power. (2025).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-study
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