Total Loss Auto Claims Drive Down Customer Satisfaction, J.d. Power Finds

Customer satisfaction with auto insurance claims is declining as more vehicles are declared total losses, even as repair times improve, according to J.D. Power’s 2026 U.S. Auto Claims Satisfaction Study.

Overall satisfaction with auto claims remained unchanged at 700 on a 1,000-point scale. Satisfaction increased 4 points for claims involving repairable vehicles but fell 12 points for total loss claims, marking the third consecutive annual decline for the latter category.

Total losses accounted for 26% of auto insurance claims in 2026, up from 16% four years earlier, according to the study released Oct. 27.

Rising repair costs, consumers keeping vehicles longer and higher deductibles that remove smaller repairs from the claims process are contributing to the increase, J.D. Power said.

Loan balances add to total loss challenges

The study found that customers who owe more on their vehicle loans than insurers pay out following a total loss report the lowest satisfaction, with a score of 490.

Among customers with loans on totaled vehicles, 25% received insurance payouts that were less than their outstanding loan balances.

The findings highlight a challenge for insurers as affordability pressures affect both policy coverage and claims experiences. Some customers have increased deductibles or dropped rental coverage to reduce premiums, according to Mark Garrett, director of global insurance intelligence at J.D. Power.

When a vehicle is totaled, a policyholder’s settlement may not cover the remaining loan balance. Gap insurance can help cover the difference between an eligible vehicle’s insurance settlement and the amount owed on a loan or lease, subject to the policy’s terms and conditions.

Total loss satisfaction has fallen 46 points since 2023, according to J.D. Power.

Repair times improve as shop backlogs ease

The claims experience has improved for customers whose vehicles can be repaired.

Average repair cycle times fell to 15.3 days in the first quarter of 2026, down 10 days from the first quarter of 2024. Lower claim volumes have given repair shops more capacity, helping reduce delays, the study found.

The contrast between repairable claims and total losses comes after a similar pattern in the 2025 study. That report found satisfaction with repairable claims had improved 9 points year over year, while total losses accounted for 27% of claims, up from 24% in 2024. <Cite refs={["turn338158search0"]}/>

Insurer communication remains a challenge

J.D. Power also found room for improvement in how insurers communicate with customers across different channels.

Customer satisfaction reached 804 among policyholders who completely agreed that their insurer provided a seamless experience across channels. The score fell to 390 among those who disagreed.

Insurers delivered a seamless cross-channel experience only 54% of the time, according to the study. Customers can encounter problems when explanations are unclear, digital tools fail to work as expected or they must use multiple channels to get answers.

The study examines claims experiences across eight dimensions: trust, fairness of settlement, people, time to settle a claim, communication, ease of resolving a claim, ease of starting a claim and digital channels.

Amica leads claims satisfaction rankings

Amica ranked highest in overall auto claims satisfaction with a score of 775. Nationwide placed second at 743, followed by Automobile Club of Southern California (AAA) at 740.

The 2026 study is based on responses from 8,261 auto insurance customers who settled a claim within the nine months before participating in the survey. It was conducted from September 2025 through August 2026.

The study excludes claims involving only glass or windshield damage, vehicle theft or roadside assistance.

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