Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds
Participation in Usage-Based Insurance Programs Reaches Record High as Customers Seek Lower-Cost
Policies
TROY, Mich.: 13 June 2023 — Nearly one-third (31%) of U.S. auto insurance customers say theyexperienced a rate increase during the past year as the industry raises rates an average of 15.5%1 andinsurers continue to fight the forces of record high loss ratios. Auto insurers lost an average of 12 cents on
every dollar of premium they collected in 2022—the worst performance in more than 20 years—leaving
them few alternatives but to raise rates at the expense of customer satisfaction. According to the J.D.
Power 2023 U.S. Auto Insurance Study,SM released today, satisfaction with auto insurance has dropped 12
points (on a 1,000-point scale) year over year, the largest decline in the past 20 years. The decline is largely
driven by lower satisfaction with the price customers pay for insurance, a factor that has declined 25 points
this year.
This phenomenon is driving an increase in adoption of usage-based insurance (UBI) programs, which basethe cost of a policy on a driver’s behaviors using telematics data. Customers new to an insurer have a high
UBI participation rate of 26%.
“Overall customer satisfaction with auto insurers has plummeted this year, as insurers and drivers comeface to face with the realities of the economy,” said Mark Garrett, director of insurance intelligence at J.D.
Power. “While insurers are caught between a rock and a hard place when it comes to balancing profitability
with customer experience, there are several ways they can blunt the negative effects of rising costs, suchas proactively offering customers UBI alternatives, clearly signaling and explaining necessary rateincreases and consistently delivering on brand promises to instill trust.”
Following are some key findings of the 2023 study:

1•

Surging rates topple customer satisfaction: Auto insurance price increases are three times higher
than other categories tracked by the Consumer Price Index (15.5% vs. an average of 4.9%). Overallcustomer satisfaction with auto insurance providers is 822, down from 834 a year ago. The decline
is driven by a 25-point decrease in customer satisfaction with the price of their policies.

•

Price increases were likely more prevalent: More customers likely experienced increases butawareness is affected by the method and frequency of billing and payments. Among thosecustomers who received a bill in the mail and paid in full via credit card, nearly half (45%) said they
had a price increase, compared with more than one-fourth (28%) of those who received a digital billand made automatic recurring installment payments.

•

Not all customers react the same: Some groups of customers had a more negative reaction to
price increases, including those who either rent their residence or do not bundle their home andauto insurance; are single car/single driver households; are open to switching insurers; or those
who have a lower perception of their insurer being trustworthy.

U.S. Bureau of Labor Statistics: CPI April 2023

jdpower.com/business•

UBI sees record adoption: Participation in usage-based insurance programs has more than doubled
since 2016, with 17% of auto insurance customers now participating in such programs. Pricesatisfaction among customers participating in these programs is 59 points higher on average thanamong non-participants.

•

As UBI adoption gains, growing pains emerge: While more customers than ever have adopted UBI,
the programs are still relatively new. One-third (33%) of customers currently using UBI have been on
the program for less than one year. Concerns over accuracy of data collected by UBI technologies
has become a pain point, with just 38% of customers indicating that the information collected is“always accurate.”•

Softening the blow of a price increase: While price increases are never good for customer
satisfaction, notifying customers in advance through their preferred channel (e.g., phone call fromtheir agent) and making the reason for the increase clear as well as discussing any options that
may be available, such as UBI, can make a big difference in how they are perceived by customers.
The amount of the price increase also affects customer satisfaction, with a 137-point difference inprice satisfaction between those experiencing an increase of more than $300 vs. thoseexperiencing an increase of $50 or less.

The study measures customer satisfaction with auto insurance in 11 geographic regions. Highest-ranking
auto insurers and scores, by region, are as follows:
California: Wawanesa (843) (for a fourth consecutive year)
Central: Shelter (851) (for a third consecutive year)
Florida: State Farm (833)
Mid-Atlantic: Erie Insurance (863) (for a second consecutive year)
New England: GEICO (836)
New York: New York Central Mutual (842) (for a second consecutive year)
North Central: Erie Insurance (844) (for a third consecutive year)
Northwest: The Hartford (836) (for a second consecutive year)
Southeast: Farm Bureau Insurance - Tennessee (866) (for a 12th consecutive year)
Southwest: State Farm (835) (for a second consecutive year)
Texas: Auto Club of Southern California (AAA) (839)
Usage Based Insurance (UBI): GEICO (824), Progressive (824) and State Farm (824) in a tie
The 2023 U.S. Auto Insurance Study, now in its 24th year, examines customer satisfaction in five factors (inalphabetical order): billing process and policy information; claims; interaction; policy offerings; and price.
The study is based on responses from 41,437 auto insurance customers and was fielded from January
through April 2023. New this year, the study has introduced a national award category for UBI, along withdiagnostics that influence UBI participants’ experience with insurers’ usage-based auto products.
For more information about the U.S. Auto Insurance Study, visit
https://www.jdpower.com/business/resource/jd-power-us-auto-insurance-satisfaction-study.
See the online press release at http://www.jdpower.com/pr-id/2023007.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer inthe use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understandconsumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions

with brands and products for more than 50 years. The world's leading businesses across major industries
rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’sbusiness offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at
JDPower.com.
Media Relations Contacts
Geno Effler, J.D. Power; West Coast; 714-621-6224; media.relations@jdpa.com
John Roderick; East Coast; 631-584-2200; john@jroderick.com
About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/pressrelease-info###
NOTE: 12 charts follow.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

California
Wawanesa

843

CONNECT by American Family

839

Auto Club of Southern California (AAA)

832

GEICO

830

State Farm

826

CSAA Insurance Group (AAA)822

Allstate

816

Region Average

813

Farmers

810

Progressive

809

Mercury794

Nationwide

794

SafecoKemper

USAA^

767
736

871

Note: ^Brand is not rank eligible because it does not meet study award criteria.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

CentralShelter

851

American Family

837State Farm

833

Auto-Owners Insurance

829

Region Average

822

Farmers

819

GEICO

819

Auto Club of Southern California (AAA)811

Allstate

806

Liberty Mutual

803

Progressive

803

Safeco802

Travelers

797

Nationwide

792

USAA^

890

Note: ^Brand is not rank eligible because it does not meet study award criteria;
Central includes Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

FloridaState Farm

833

Allstate

821

Automobile Club Group (AAA)

813

GEICO

812

The Hartford

812

Region Average

810

Progressive

801

Travelers

798

Liberty Mutual

797

Auto-Owners Insurance

782

Farmers

777

USAA^

858

Note: ^Brand is not rank eligible because it does not meet study award criteria.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

Mid-Atlantic
Erie Insurance

863

State Farm

843

The Hartford

840

NJM Insurance Co.

834

Region Average

830

CSAA Insurance Group (AAA)827

Allstate

825

Travelers822

Nationwide

820

GEICO

818

Progressive

814

Safeco813

Liberty Mutual

807

Plymouth Rock Assurance

807

Farmers

803

USAA^

877

Note: ^Brand is not rank eligible because it does not meet study award criteria;
Mid-Atlantic includes Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

New England
GEICO

836

Amica

833

State Farm

829

Allstate

816

Region Average

816

Safety Insurance

814

Progressive

802

Arbella799

MAPFRE Insurance

797

Plymouth Rock Assurance

795

Liberty Mutual

787

Travelers

782

USAA^

896

Note: ^Brand is not rank eligible because it does not meet study award criteria;
New England includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

New York
New York Central Mutual

842

State Farm

826

GEICO

821

Travelers

821

Allstate

819

Region Average819

Progressive

818

Nationwide

Liberty Mutual

USAA^

800

789

879

Note: ^Brand is not rank eligible because it does not meet study award criteria.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)North Central
Erie Insurance

844

Grange Insurance

838

State Farm

837

The Hanover

835

Auto-Owners Insurance

833

Westfield Insurance

833

GEICO

831

Michigan Farm Bureau

831

COUNTRY Financial

828

Indiana Farm Bureau Insurance

828

Region Average

825

Allstate

822

Nationwide

821

American Family

819

Farmers

816

Progressive

816

Travelers

806

Liberty Mutual

801

Safeco795

Automobile Club Group (AAA)

786

USAA^

878

Note: ^Brand is not rank eligible because it does not meet study award criteria;
North Central includes Illinois, Indiana, Michigan, Ohio and Wisconsin.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)Northwest
The Hartford

836

PEMCO Insurance

831

State Farm

821

Region Average

810

Safeco808

Progressive

807

GEICO

797

Farmers

796

Allstate

783

Liberty Mutual

783

USAA^

875

Note: ^Brand is not rank eligible because it does not meet study award criteria;
Northwest includes Idaho, Montana, Oregon, Washington and Wyoming.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)Southeast
Farm Bureau Insurance - Tennessee

866Erie Insurance

859

Kentucky Farm Bureau

857

Alfa Insurance

851

State Farm

847

North Carolina Farm Bureau

842

Region Average

839

Progressive

836

Nationwide

834

Allstate

832

Safeco

829

GEICO

828

Liberty Mutual

820

Travelers

818

Auto-Owners Insurance

816

National General

812

Farmers

807

USAA^

876

Note: ^Brand is not rank eligible because it does not meet study award criteria;
Southeast includes Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)Southwest
State Farm

835

American Family

828

The Hartford

828

CSAA Insurance Group (AAA)819

Region Average

816

Progressive

809

Auto-Owners Insurance

808

Liberty Mutual

808

Travelers

806

GEICO

804

Allstate

801

Safeco795

Nationwide

783

Farmers

781

USAA^

879

Note: ^Brand is not rank eligible because it does not meet study award criteria;
Southwest includes Arizona, Colorado, Nevada, New Mexico and Utah.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

Texas
Auto Club of Southern California (AAA)839

State Farm

838

Texas Farm Bureau

824

Region Average

816

Farmers

813

Progressive

813

Allstate

809

GEICO

801

Liberty Mutual

USAA^

790

860

Note: ^Brand is not rank eligible because it does not meet study award criteria.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name

J.D. Power
2023 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index Ranking(Based on a 1,000-point scale)

Usage Based Insurance (UBI)
GEICO

824

Progressive

824

State Farm

824

Liberty Mutual

823

Segment Average

816

Allstate

810

Farmers

800

American Family

794

Nationwide

788

USAA^

844

Note: ^Brand is not rank eligible because it does not meet study award criteria.
Source: J.D. Power 2023 U.S. Auto Insurance Study SM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th isrelease or J.D. Power survey results without the express prior written consent of J.D. Power.