- Are drivers less satisfied with their auto insurance companies?
- How do insurance customers feel about car insurance rate increases?
- Have car insurance rates really gone up that much?
- Are people satisfied with their car insurance claim experience?
- Where car insurance companies lost the most ground and why
- Takeaways from the car insurance survey: Rising rates while reducing risk
Are drivers less satisfied with their auto insurance companies?
According to our survey, customer satisfaction with auto insurers declined by 3% in 2025. In 2025, 88% of auto owners were satisfied with their insurer, compared to 85% in 2024
The good news is that the number of customers who feel their insurer is trustworthy and plan to renew their policies increased slightly. In 2024, 89% of customers rated their insurer as reliable, compared with 90% in 2025. Additionally, 92% of respondents planned to renew with their carrierAn insurance carrier is the company that provides your car insurance policy and pays claims. in 2024, and that figure rose to 93% in 2025.
This slight increase in customer satisfaction indicates that customers have confidence in their insurers, even when they’re less satisfied with rate increases and claims handling.
Our survey wasn’t the only one to show that customer satisfaction with rate increases declined. J.D. Power’s 2025 U.S Auto Insurance Study had similar results.
“According to the J.D. Power U.S. Auto Insurance Study, overall satisfaction dipped between 2022 (average score of 657) and 2023 (average score of 645) but has been remarkably stable since then. Customer satisfaction with auto insurer’s price for coverage and digital channels has also been stable,” says Stephen J. Crewdson, managing director, Global Business Intelligence – Insurance at J.D. Power.
Here’s a look at this year’s survey results compared to last year’s.
| Survey category | 2024 | 2025 | +/- Change |
|---|---|---|---|
| Customer Satisfaction | 88% | 85% | -3% |
| Ease of Service | 90% | 88% | -2% |
| Policy Offerings | 86% | 84% | -2% |
| Claims Handling | 82% | 78% | -4% |
| Digital Experience | 84% | 82% | -2% |
| Discounts | 66% | 61% | -5% |
| Fair rate increases over time | 60% | 55% | -5% |
| Young drivers and teens | 65% | 55% | -10% |
| College students | 65% | 55% | -10% |
| Senior drivers | 68% | 66% | -2% |
| Drivers with tickets | 66% | 60% | -6% |
| Bundling | 75% | 78% | 3% |
| Renewing? | 92% | 93% | 1% |
| Recommend? | 88% | 87% | -1% |
| Trustworthy? | 89% | 90% | 1% |
How do insurance customers feel about car insurance rate increases?
Satisfaction with the fairness of rate increases declined substantially in 2025. Auto insurance customers were asked whether rate increases were fair, and 60% said they were in 2024. However, only 55% of customers feel that rate increases were fair in 2025.
Insurers increase car insurance rates for various reasons, including higher repair costs, catastrophic events such as floods and hurricanes, and economic factors like rising material and medical expenses, which influence overall rate trends.
Likely, a driver of auto insurance customers’ feelings about rate increases is the feeling that they did nothing to incur them, and they don’t understand why they’re facing higher premiums.
“Where J.D. Power sees customers struggling is [that] only 38% of consumers who have had a price change say they completely understand the reasons for their price change, and this is a key driver of overall satisfaction. Auto insurers can up their game in communicating well with consumers when increasing premiums,” Crewdson says.
Have car insurance rates really gone up that much?
Car insurance rates have risen an average of 5.3% year over year, according to the U.S. Department of Transportation (2025) Transportation Consumer Price Index. However, many drivers have experienced much higher increases.
While many personal factors, such as age and driving record, affect car insurance rates, factors outside of your control can also significantly raise rates. For example, if you live in an area that has a high vehicle theft rate or a lot of traffic, your rates can increase even if you’re a good driver.
Weather-related events can also substantially increase premiums. If you live in an area prone to floods, hurricanes, hailstorms, or other catastrophic events, expect higher rates since your insurer is more likely to pay claims in that area.
Economic factors, such as rising material and labor costs, as well as skyrocketing medical expenses, also impact rates. Combine that with an increased number of drivers letting their car insurance lapseWhen your auto insurance coverage ends because you missed a payment or did not renew it on time. A lapse in auto insurance coverage may result in paying higher premiums for a new policy., many for financial reasons, and insurers raise car insurance premiums to keep up with rising costs.
Are people satisfied with their car insurance claim experience?
Claims handling is another area where customers are significantly less satisfied. When asked about claims in 2024, 82% reported being satisfied with their experience. However, only 78% of drivers in 2025 reported satisfaction with their claims.
Handling claims after an auto accident can be challenging, but dealing with claims after a major catastrophe, such as a hurricane or wildfire, can be even more difficult because hundreds of people may be trying to get their cars repaired simultaneously, which can lower customer satisfaction with the claims experience.
Additionally, the increase in car repairs can drive up material and labor costs, making the market more competitive. Since insurers pay more for claims after a catastrophic event, drivers can expect higher rates to reflect this. These rate increases can also affect drivers outside the affected area.
Where car insurance companies lost the most ground and why
There are two areas where car insurance customers are less satisfied than they were last year: teens and young drivers. Both categories dropped by 10%.
Rates for these two groups are already the highest of all age groups, so rate increases, even if they happen across the board, can push these groups into unaffordability. Furthermore, as insurers seek to reduce costs, they tend to back away from higher risks — and young drivers are one of the highest-risk groups.
Satisfaction with insurance companies for drivers with tickets is also down, by 6%, likely for similar reasons.
Takeaways from the car insurance survey: Rising rates while reducing risk
As car insurance companies seek to reduce risk and generate more revenue than they spend on claims, customers are feeling the impact. Areas of the survey that represent higher-risk drivers show reduced satisfaction, indicating those groups are having more trouble finding car insurance.
While it’s a simple explanation to say that satisfaction is down due to higher rates — and it’s certainly more complex than that — people do expect to get what they pay for. Insurance customers are less likely to be forgiving when they’re paying more.
Satisfaction was down in nearly every area of our survey, with the only notable increase in satisfaction tied to bundling. That could be because it’s one area where people can save some money.
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