Retaining Personal Auto Clients by Improving Customer Service

• By: Olivia Overman
• March 9, 2026

Driven partially by favorable private passenger auto outcomes, the property & casualty insurance market is expected to record its best underwriting results in 18 years for 2025, according to S&P Global Market Intelligence’s “2025 U.S. Auto Insurance Market Report.”

Yet, this level of improvement may be fleeting, as the market faces a number of risks, including the dynamic nature of competition, the report says.

In 2026, insurers will prioritize customer experience to counter declining satisfaction and to focus on retaining clients, according to Forrester’s “Predictions 2026: Insurance” report. For independent agents, the truth remains: Building strong customer relationships is critical. When paired with effective collaboration with carriers, strong agent-customer relationships ensure that carriers receive the necessary information while clients obtain the coverage they need, leading to higher retention levels, the report said.

“We’re in a period of one of the most competitive markets for personal auto,” says Mike Grove, senior vice president of auto product state management at Liberty Mutual Insurance. “This is where the human touch of independent agents becomes so valuable in terms of the partnership.”

Emphasizing customer service in personal auto insurance discussions can lead to more meaningful conversations and successful sales for agents. An example of top-class customer service includes “making sure you know who resides in the household, particularly when there are children who have just started driving or a child who will be driving in two or three years,” Grove says. “Agents can ensure children are getting added to the policy, or they follow up, when necessary, in a few years.”

Further, questions regarding the use of a client’s vehicle can identify additional coverage opportunities. For instance, “we estimate that in some states across the country, as high as 10% of drivers could be using their personal vehicles for ride-share or delivery companies,” Grove says. “Agents can inquire how clients’ vehicles are being used, if there has been a recent life change and if policies are being updated.”

“Independent agents are playing a more critical role than ever as customers shop aggressively and look for guidance on coverage, value and carrier stability,” says Brenda Castellano, senior vice president at National General. “Giving customers access to choice, objective guidance and advocacy from someone who represents their interests is important.”

After multiple years of sizable rate actions, auto retention fell as consumers discovered they have real leverage, according to TransUnion’s “2026 Personal and Commercial Lines Annual Insurance Outlook.” Carriers will continue to combat that trend by matching communication and service to evolving expectations. Value for money and ease of use lead the list of what customers say they value most, the report said.

As a result, insurers will continue to rely heavily on agents’ human connections to build stronger relationships.

“While making sure that a lot of questions and data have been pre-filled, nothing beats the value of an independent agent sitting down and understanding the household,” Grove explains. “The benefit is when an agent is quoting auto but also inquiring about home and other coverages that may be needed—really understanding the household and making sure they identify the risks.”

“Asking about driving habits, household changes or life events uncovers coverage gaps and reinforces the agent’s advisory value,” Castellano says. “Regular coverage check-ins, bundling conversations and life-event reviews help agents stay relevant and ensure coverage keeps pace with customer needs.”

By focusing on personalized service and proactive engagement, agents can also emphasize their carriers’ ability to personalize auto coverage.

“From a sales and service standpoint, ease of doing business matters more than ever,” Castellano says. “Leveraging carriers that offer a broad portfolio, responsive claims support and efficient underwriting allows agents to spend less time navigating friction and more time advising customers.”

“Options like mobility intelligence programs can also be powerful, not just as savings opportunities, but as engagement tools that open the door to ongoing conversations about driving behavior, risk and long-term affordability,” Castellano says. “The agents who consistently add value are those who combine smart product placement with clear guidance and steady follow-through, greatly impacting their own retention.”

Olivia Overman is IA content editor.