The data: In J.D. Power’s 2025 US Auto Claims Satisfaction Study, Erie Insurance ranked highest in overall satisfaction, followed by NJM and Liberty Mutual. But the data also reveals cost pressures: Auto insurance customers are trying to manage premium costs by raising deductibles (26% of those customers had deductibles of $1,000 or more), foregoing rental car insurance or collision coverage, and avoiding filing claims.

Trendspotting: High costs squeeze both customers and insurers: While rates declined after peaking in 2024, relief has been uneven: 44% of claimants saw a price increase in the last 12 months. Insurers also grapple with rising claims severity: total losses account for 27% of claims, up from 24% in 2024 and 16% in 2022.

Several structural challenges are driving costs higher for both consumers and insurers:

• Aging vehicle fleet: High purchase prices, driven by higher interest rates and a weak supply of new cars, are delaying replacements, pushing the average age of vehicles driven in the US to nearly 13 years. And the share of repairable cars that are seven years or older has also grown.
• Expensive vehicle technologies: A growing proportion of hybrids and EVs on the road is reportedly raising costs: Hybrids have the most expensive parts on average, while EVs require more labor hours and more expensive parts per repair.
• Rising casualty costs: The average third-party injury payout rose 8% year over year, driven by rising US healthcare costs per capita.

Our take: Insurers navigating these pressures need focused action across functions: The J.D. Power study’s results imply that product teams should prioritize transparent claims processes and intuitive digital tools, while marketers must emphasize trust and responsiveness—qualities that resonate more when customers are weighing coverage trade-offs.

The claims experience is becoming a differentiator as policyholders grapple with rising costs. Insurers that deliver on high claims satisfaction may better be able to retain customers. But as claim values climb, insurers will struggle to balance pricing discipline with strategic spending on technology and process improvements.