About one third of auto insurance customers in the U.S. reported a rate increase in the past year, leading to a growing number moving to usage-based insurance (UBI).
This has led to the largest decline in customer satisfaction in 20 years, according to J.D. Power’s 2023 U.S. Auto Insurance Study.
Auto insurance customer satisfaction dropped 12 points to 822, down from 834 a year ago (on a 1,000-point scale). The decline, according to the report, is driven by lower satisfaction with the price customers pay for insurance, a factor that declined 25 points this year. The industry raised rates an average of 15.5% as insurers fight record high loss ratios.
