While auto insurance premiums are finally declining after hitting record highs in 2024, many customers have yet to see the savings.
Rising deductibles, longer repair times on ADAS-equipped vehicles and a shifting customer claims mindset are combining to create challenges for collision repair shops, according to the latest J.D. Power 2025 U.S. Auto Claims Satisfaction Study.
The study found that 26% of auto insurance customers now carry deductibles of $1,000 or more, and 7% say they’ve avoided filing a claim because of fear their rates will rise. Meanwhile, overall customer satisfaction with the claims process stands at 700 on a 1,000-point scale, rising just 3 points year-over-year.
The fact that more drivers carry $1,000+ deductibles is especially acute among younger policyholders: 43% of Gen Z customers who experienced premium increases now carry high deductibles.
After auto insurance rates peaked near record highs in April 2024, they steadily declined during the remainder of the year and into 2025. However, the study said, many customers have yet to feel the effects of those decreases. In fact, J.D. Power found 44% of auto insurance customers with a claim said they experienced a price increase in the past 12 months.
Shaun Arroyo, general manager of Aurora Collision Center in Stockton, CA, told Autobody News he has seen a rise in claims involving hit-and-runs and uninsured motorists, with deductibles around $500 to $1,000.
“I don’t believe that customers are seeing any decreases in their premiums,” Arroyo said. “A lot of them will have a policy limit on uninsured motorists of $3,500 to $5,000 and are on the hook for the rest. Interesting times.”