After what felt like years of insurance rate increases, the state of auto insurance has finally started to normalize. However, consumers are still feeling the financial strain, and it’s taking a toll on their entire experience. According to the J.D. Power 2025 U.S. Auto Claims Satisfaction Study, overall satisfaction with the claims process has barely moved, rising just three points year over year to 700 on a 1,000-point scale. This stagnation is driven by customers taking on higher deductibles, a growing number of total loss claims, and new challenges in vehicle repair.
The Hidden Costs of Higher Deductibles
In an effort to lower their premiums, many drivers have opted for policies with higher deductibles. The study found that 26 percent of auto insurance customers now have a deductible of $1,000 or more. While this can reduce monthly payments, it has a significant negative effect on satisfaction when a claim is filed. Customers with these high deductibles are spending more out-of-pocket, leading to financial stress and a less positive view of their insurance provider.
This trend is particularly popular among younger drivers. The study revealed that 43 percent of Gen Z customers who experienced a rate increase now carry a deductible of $1,000 or more. Satisfaction among customers with high deductibles who also had to cover rental costs dropped by 21 points from 2024, falling to just 630. The short-term cost savings on premiums can lead to long-term dissatisfaction during the critical claims process.
Total Losses and Repair Complexity Grow
The nature of auto claims is also changing. Total loss claims now account for 27 percent of all claims, up from 24 percent last year and just 16 percent in 2022. This rise in claim severity puts additional pressure on customer satisfaction. When a vehicle is declared a total loss, the settlement valuation becomes a critical interaction point between the provider and the customer. The study found that satisfaction drops by 9 points in these cases, with only 58 percent of customers feeling that the valuation fully met their expectations.
On a more positive note, repair cycle times for repairable vehicles have improved, dropping from 22.3 days to 19.3 days on average. This has contributed to a 9-point increase in satisfaction for this segment. However, the growing complexity of modern vehicles presents a new challenge. The presence of advanced driver assistance systems (ADAS) can significantly extend repair times. A vehicle from 2015 or older with no ADAS features has an average repair cycle of 17.9 days, while a newer model with three or more ADAS features takes an average of 21.5 days.
The Path to Better Satisfaction
While the overall claims satisfaction score is flat, the study offers a clear path forward for insurers. With fewer claims being reported—as some customers avoid filing for fear of rate hikes—insurers have an opportunity to improve customer support and speed up processes. The key is to manage customer expectations effectively, especially around costs and repair timelines.
Insurers that proactively communicate, provide fair settlements, and streamline the claims process are better positioned to earn customer trust and loyalty. In a market where customers are highly sensitive to costs, a smooth and transparent claims experience can be a powerful differentiator. The study named Erie Insurance as the leader in overall customer satisfaction with a score of 743, followed by NJM Insurance Co. and Liberty Mutual, demonstrating that a focus on the customer experience yields tangible results.
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