Auto Insurance Rates Decline but Satisfaction Remains Strained

By: Olivia Overman
October 29, 2025

Auto insurance rates have started to decline from the near-record highs of 2024. However, customers are still feeling the sting of several years of sky-high insurance costs when it comes to their claims experience, according to the J.D. Power “2025 U.S. Auto Claims Satisfaction Study^SM.”

While many insurers have filed for rate decreases in 2025, many customers have yet to feel the effects of those decreases, with 44% of auto insurance claimants reporting a price increase in the past 12 months, the report said.

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As a result, many consumers have adjusted their coverage by raising deductibles, according to J.D. Power. Twenty-six percent of auto insurance customers now have deductibles of $1,000 or more. This trend is most prominent among Generation Z drivers, with 43% of this generation carrying a deductible of $1,000 or more.

The average overall satisfaction score among customers with deductibles of $1,000 or more who incurred rental costs is 630 on a 1,000-point scale, down a considerable 21 points from 2024, the report said.

Additionally, 7% of auto insurance customers say they’ve avoided filing a claim for fear their rates could rise, according to the report. As a result, fewer claims being reported means faster repair times and better customer support, resulting in a 9-point improvement in satisfaction among repairable vehicles, the report said

Yet, the severity of claims has continued to grow. Total losses now account for 27% of claims, up from 24% a year ago and up from 16% in 2022, the report said.