America's top car insurers in 2022 – a region-by-region breakdown

Rising premiums brought about by a perfect storm of challenges – record-high number of serious collisions, surging repair costs, and skyrocketing used-vehicle prices – as private car usage returns to pre-pandemic levels have caused a sharp decline in customer satisfaction, the latest survey from consumer insights and data analytics firm J.D. Power has revealed.

The situation, however, was offset by the industry’s efforts to improve client engagement notably through increased transparency when it comes to rate hikes and the adoption of usage-based insurance.

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J.D. Power polled almost 37,000 auto insurance policyholders from January to April and found that customer satisfaction when it came to premium prices dropped five points to 769 (on a 1,000-point scale) from 2021. Overall satisfaction with auto insurance companies, meanwhile, remained steady at 834 from 835 a year ago, thanks to the steps taken by many providers to retain clients.

What measures did auto insurers take to build customer satisfaction and retention?

According to the firm’s report, there were two “bright spots” that enabled auto insurers to retain their client base.

“First, those insurers that are transparent and notify customers in advance of price increases can blunt the negative effects of a price increase,” said Robert Lajdziak, director of insurance intelligence at J.D. Power. “Second, usage-based insurance is growing quickly, with an all-time high number of customers adopting these programs and due to their experience using them, overall customer satisfaction levels have significantly risen.”

The study showed that insurers were able to mitigate the negative effects of rate increases by being proactive about the situation and notifying customers in advance. In the past year, 59% of clients who experienced a price hike were informed beforehand by their insurers, up from 44% in 2016. This resulted in an increase in overall satisfaction scores by an average of 37 points.

Read more: What motorists need to know about their auto insurance score

During the same period, participation in usage-based insurance programs, which use telematics technology to monitor driving habits and assign risk and pricing, doubled to 16%. The report found that price satisfaction among participants was 59 points higher, on average, compared to the overall rating.  

A region-by-region breakdown of America’s top auto insurers for customer satisfaction

The majority of regions registered a drop in customer satisfaction scores compared to their 2021 ratings, with the New York suffering an eight-point decline – the largest among all regions. The state was followed by the Central region – consisting of Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota – which saw ratings dip from 841 to 835.

Four regions – California, Southeast, Southwest, and Texas – posted an increase in overall ratings, while satisfaction scores in Florida and the North Central region remained almost flat.

Below is a region-by-region breakdown of the country’s top auto insurers in terms of customer satisfaction based on J.D. Power’s latest data. It is also important to take note that USAA came out on top in 10 of the 11 regions, mostly by a mile, but was excluded from the rankings because the insurer, which caters exclusively to members of the military and their families, did not “meet study award criteria.”

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California

While California’s overall satisfaction score climbed four points from last year to 820, it still had the lowest industry average among all regions. Wawanesa retained the top spot for the second straight year, upping its ratings a whopping 26 points from 2021 and leading distant second-placer Automobile Club of Southern California by 35 points. Connect by American Family, Mercury, and Allstate rounded up the region’s top five insurers.

Central

Overall customer satisfaction rating decreased six points in the Central region. Shelter remained the top auto insurer, registering a 10-point increase in ratings, which was 31 points higher than the regional average. American Family rose from the sixth spot to claim second, while GEICO and State Farm switched places in the top five. Liberty Mutual, which was outside the top 10 last year, grabbed fifth place after hiking its satisfaction score by 15 points. 

Florida

Florida’s satisfaction index dropped a solitary point from last year to 832. The Hartford rose to first place from fourth in 2021, hiking its score by 18 points and unseating State Farm, which slid down to number four after suffering an eight-point reduction in its overall ratings. Allstate and Automobile Club Group shared the second spot, with the latter jumping from eighth place last year after posting a 32-point improvement in satisfaction ratings.

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Mid-Atlantic

Average client satisfaction rating decreased three points to 839 in the Mid-Atlantic region, comprising Delaware, the District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia. Erie Insurance claimed the number one spot in the region, posting a score of 867 and taking over NJM Insurance, which dropped to fourth. Travelers, another riser, secured second place, while State Farm and GEICO retained their spots in the top five. 

New England

New England’s regional satisfaction score dipped from 828 in 2021 to 823 this year. The region consists of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Amica Mutual was the region’s top auto insurer for the 10th consecutive year, although its ratings dropped by five points. State Farm, which saw its score go down 17 points, also retained the number two spot. Plymouth Rock Assurance was the region’s biggest riser, climbing all way from number 11 to third place. GEICO and Arbella rounded up the top five. 

New York

New York Central Mutual took the top car insurer award in the state, posting a rating 12 points above the regional average. It edged State Farm, which slid down to second, and GEICO, which climbed to third from fifth in 2021. A 22-point dip in rating dropped Travelers to fourth place. Progressive completed the top five, rising from number eight last year, despite a two-point reduction in its overall score.

North Central

Comprising Illinois, Indiana, Michigan, Ohio, and Wisconsin, the North Central region saw a marginal drop in overall satisfaction scores from 839 to 838. Erie Insurance is the leading auto insurer for the second straight year, upping its rating by 19 points. It was followed by Country Financial and State Farm, but Allstate, which jumped from number 13 to a tie with GEICO for the fourth spot, was the region’s biggest riser.

Northwest

The Northwest region – consisting of Idaho, Montana, Oregon, Washington, and Wyoming – improved its overall client satisfaction rating from 827 to 829. The Hartford, which was not included in last year’s rankings, surprisingly claimed the top spot, posting an overall score of 842. State Farm dropped from first to second while GEICO’s nine-point improvement was good enough to secure third place. Last year’s second-placer PEMCO slid down to number four, after a 12-point score reduction, while Progressive climbed a notch to complete the top five.

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Southeast

Southeast posted the highest customer satisfaction score among all regions at 849, a two-point increase from last year. Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee comprise the region. For the 11th consecutive year, Farm Bureau Insurance - Tennessee held the region’s top spot, although its score dropped by six points. Auto-Owners Insurance, which hiked its rating by 22 points, secured second place, unseating Erie Insurance. A 25-point improvement in client satisfaction score, meanwhile, helped Alfa Insurance claim fourth place from number eight in 2021. 

Southwest

Overall client satisfaction score declined by five points to 827 in the Southwest. The region consists of Arizona, Colorado, Nevada, New Mexico, and Utah. American Family, which ended up in third place, relinquished the number one spot to State Farm, no thanks to a 17-point drop in satisfaction rating. The Hartford rose from sixth to second this year, while GEICO and Allstate claimed fourth and fifth place, respectively.

Texas

A four-point increase in regional customer satisfaction rating placed Texas among this year’s biggest risers. Texas Farm Bureau is the undisputed leader among all auto insurers in the state, securing the top spot for the 11th straight year. State Farm’s 13-point improvement helped it claim second place, while GEICO and Automobile Club of Southern California burst into the top five from sixth and eighth, respectively, in 2021, overtaking Allstate, which retained the fifth spot.