J.D. Power’s best and worst auto insurance companies for 2024

The best and worst auto insurance companies for claims

NJM Insurance Company, a small regional carrier, earned the top spot in the 2024 U.S. Auto Claims Satisfaction Study, scoring 782 out of 1,000. Amica took second place with 746, and Erie Insurance came in third with 733. Conversely, Mercury earned the bottom spot with 663, and Progressive and National General tied with 672.

The average score was 697, but many insurers on the list were well below. The study found that repair times decreased over previous years, but rates increased for many drivers after filing a claim. Additionally, older drivers weren’t comfortable using the digital platform to file and monitor claims. While these things contributed to low scores, customers who received timely feedback and updates on their claims process offered more favorable scores.

See below to compare insurance companies' claims satisfaction ratings.

The best and worst auto insurance companies for customer satisfaction by region

J.D. Power’s Auto Insurance Study breaks down customer satisfaction ratings by region and includes major insurers as well as regional companies. Among the companies that won a region are Auto Club of Southern CA (AAA), Shelter, Auto-Owners Insurance, Erie Insurance, Amica, Travelers, PEMCO Insurance, Alfa Insurance, CSAA Insurance Group (AAA), and Texas Farm Bureau.

While only Erie Insurance ranks at the top of more than one region, Liberty Mutual, Farmers, National General, and Travelers are at the bottom in multiple areas.

Trust was a significant theme in the study. Insurance customers who trusted their carrier were much more likely to renew with that company. Over half of the people surveyed said they did not trust their insurer. Customers in Florida expressed the lowest level of trust and also saw significant rate increases.

“Trust is the dimension in the 2024 J.D. Power U.S. Auto Insurance Study that most impacts overall satisfaction with auto insurers. Some consumers have struggled to maintain trust with their insurer in light of recent historic premium increases, especially if they have not filed a claim or made a change to their policy. It has been challenging for insurers to clearly explain the impact inflation has had on automobile claims and the resulting need to increase premiums to cover these increased costs,” says Stephen Crewdson, senior director of global business intelligence – insurance at J.D. Power.

The data below shows how insurers ranked in each of the 11 regions

While USAA scored the highest in every region, it is omitted since it only offers coverage to military members and their families. However, if you qualify for USAA, you may want to consider the score.

How J.D. Power auto insurance ratings are determined

The 2024 U.S. Auto Insurance Study is based on surveys from over 41,000 car insurance customers from August 2023 to April 2024 and includes ratings from poor to perfect. The survey comprised seven main criteria: 

• Trust
• Coverage price
• People
• Ease of doing business
• Products and coverages offered
• Problem resolution
• Digital channels. 

The 2024 U.S. Auto Claims Satisfaction Study includes survey responses from 9,725 insurance owners from October 2023 through August 2024. The study consists of responses from those who settled a claim nine months before the survey but does not include claims for glass/window repairs, theft, or roadside assistance.

It measured claim satisfaction in specific areas:

• Trust
• Fairness of settlement
• Time to settle a claim
• People
• Communication
• Ease of resolving a claim
• Ease of starting a claim
• Digital channels.

It should be noted that both studies were redesigned for 2024 and are not comparable to earlier studies.

How to use J.D. Power ratings to choose the best carrier

While J.D. Power uses consumer surveys to rank insurers, other organizations use varying criteria to determine the best insurer.

For example, AM Best analyzes financial data to determine the most stable company. The National Association of Insurance Commissioners (NAIC) compiles customer complaints to rank companies, and Insurance.com’s Best Car Insurance Companies ranking surveys drivers on various topics, such as customer satisfaction and trustworthiness and the above-mentioned third-party ratings for an overview.

Consider ratings from numerous sources to find the best overall insurer for your needs. While there will probably not be one insurer on top in all the ratings, you can determine what insurers score highly in the areas that matter most to you.

Source:

J.D. Power. “2024 U.S. Auto Insurance Study.” Accessed November 2024.

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