J.D. Power is a consumer insights and analytics company used by a variety of industries, including insurance, mortgage and banking, automotive and healthcare.
While its ratings are often cited in car commercials, J.D Power's data on insurance shouldn't be overlooked: Its customer satisfaction surveys provide key insights into auto, homeowners, life, commercial and other insurance products and are used by CNBC Select to evaluate providers.
What is J.D. Power?
Founded in 1968, J.D. Power is a leading data analytics firm with independently funded studies in a variety of fields, including insurance, automobiles, mortgages, banking and investing, healthcare and travel.
While it started modestly at the kitchen table of J.D. "Dave" Power III, the company gained national prominence in the 1970s, when the Wall Street Journal cited its survey in an article about problems with Mazda's engines.
In 1984, Subaru became the first automaker to tout its J.D. Power rankings, in a commercial during Super Bowl XVIII. Today, the company is a leader in consumer insights for a variety of markets.
Hong Kong's XIO Group acquired J.D. Power in 2016. Three years later, it was sold to private equity firm Thoma Bravo and moved its headquarters to Troy, Michigan.]
What types of insurance does J.D. Power rate?
J.D. Power publishes annual surveys covering a variety of insurance verticals, including auto, homeowners, renters, life and commercial insurance.
These surveys rank top insurers out of 1,000 points, usually based on customers' experience with pricing, product options, trust, price, ease of doing business, problem resolution, employee interactions and digital channels.
Surveys on the claims process may also incorporate responses on how easy it was to file and resolve a claim, how long it took to reach a resolution and the fairness of a settlement.
J.D. Power auto insurance surveys
J.D. Power issues two annual auto insurance surveys: The J.D. Power U.S. Auto Insurance Study is an overall customer satisfaction survey ranking providers based on users' views. Because many insurers aren't available nationwide, rankings are broken into different regions.
The J.D. Power's 2024 U.S. Auto Insurance Study was based on responses from more than 40,000 drivers between August 2023 and April 2024. The top companies by region were:
California: Auto Club of Southern California (684)
Central Region: Shelter (677)
Florida: Auto-Owners (654)
Mid-Atlantic Region: Erie Insurance (713)
New England Region: Amica (709)
New York: Travelers (667)
North Central Region: Erie Insurance (710)
Northwest Region: PEMCO Insurance (666)
Southeast Region: Alfa Insurance (693)
Southwest Region: California State Automobile Association (683)
Texas: Texas Farm Bureau (686)
USAA scored significantly higher than any other provider in all 11 regions. Because its only available to active-duty service members, veterans and their families, however, the company is not ranked in the study.
The auto insurance report included a standalone survey ranking companies that offer usage-based insurance: Nationwide, which offers both the SmartRide safe-driving app and SmartMiles pay-per-mile program, came in first, with 842 points out of 1,000.
J.D. Power has also ranked insurance companies on the shopping experience and their digital platforms. A study on the claims process surveys customers about their insurer's performance with:
- Ease of filing a claim
- Ease of resolving a claim
- Fairness of the settlement
- Trust
- People
- Communication
- Timing
- Digital channels
NJM Insurance took the top spot in the 2024 claims satisfaction survey, with a score of 782 out of 1,000. It was followed by Amica (746), Erie (733), Nationwide (728) and Liberty Mutual (717).
Amica Auto Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Amica offers a variety of auto insurance policies to fit your coverage needs. The company also offers a total of 18 discounts, including discounts for bundling and for students.
App available
Yes
J.D. Power homeowners insurance surveys
J.D. Power releases two main reports on homeowners insurance each year. The U.S. Home Insurance Study surveys policyholders on overall customer satisfaction, incorporating impressions on trust, coverage options, pricing, digital channels, ease of doing business, people, problem resolution and digital channels.
Chubb came in first place in 2024, with 688 out of 1,000 points. AIG (680), Amica (679), Erieriee (674) and the Automobile Club of Southern California (671) rounded out the top five companies.
Chubb Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Policy covers home and property damages caused by wildfires, extreme weather, crime, vandalism and personal liability, which also covers claims for libel and slander. Also includes replacement cost for contents, extended replacement cost for dwelling and a cash settlement option
Does not cover
Flood or equipment breakdown (these can be purchased as add-ons to your policy)
Terms apply.
The study also ranked companies for renters insurance: The top spot went to Erie (713 out of 1,000), followed by Amica (695), Lemonade (682), State Farm (679) and the Automobile Club of Southern California (674).
Lemonade Renters Insurance
Availability
Lemonade renters insurance is available in 28 states and Washington, D.C.
Coverage limits
Personal property coverage: $250,000, personal liability: $500,000, medical payments: $500,000, loss of use: $200,000
Deductible
$250 to $2,500
Add-ons
Extra coverage for jewelry and other valuables, no-deductible claims, coverage for accidental damage and mysterious loss
Terms apply.
The company also measures customer satisfaction with insurers' property claims process, including feelings about their settlement, claim servicing, first notice of loss, the estimation process and the repair process.
Amica ranked highest for claims with a score of 906, followed by AIG (889), Erie (888), Farmers (883) and American Family (877).
Amica Homeowners Insurance
Coverage
Dwelling, other structures, personal property, additional living expenses, personal liability and medical payments.
Policy highlights
Amica's Platinum Choice plan comes with 130% dwelling coverage, increased valuable coverage and higher limits for liability and medical payments.
Add-ons
Dwelling and property replacement, coverage for computers, identity fraud, water backup and home businesses
Bundling discount
Up to 30% when you combine auto, home and life insurance
Availability
Amica offers homeowners insurance in all U.S. states except Alaska and Hawaii.
J.D. Power life insurance surveys
The J.D. Power U.S. Individual Life Insurance Study ranks companies on price, variety of life insurance products, communication, interaction and public-facing statements.
State Farm was the highest-rated provider in 2024, earning 699 out of 1,000 points, followed by Guardian (685), MassMutual (673), Northwestern Mutual (670) and Nationwide (666).
State Farm Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State Farm offers a variety of term, whole, and universal life insurance products to choose from, alongside other types of insurance. It's rated highly for both financial stability and customer service.
Why are J.D. Power rankings important?
J.D. Power is a standout for its large sample sizes and unbiased methodology. According to the company, it surveys more than 5 million Americans for its studies each year.
While the lion's share of J.D. Power's revenue comes from corporations that hire it to provide data for internal use, these clients have no sway in commissioned studies. They may pay a fee, however, for the right to reference their rankings in marketing and advertising materials
According to J.D. Power's website, "the only 'favorite' we have is the truth."
Because of this, CNBC Select regularly incorporates J.D. Power's scores when considering customer satisfaction, alongside information from other agencies like the Better Business Bureau and the National Association of Insurance Commissioners.
J.D. Power FAQs
What is J.D. Power?
J.D. Power is a well-respected data analytics firm best known for benchmarking studies on customer service in a variety of industries, including insurance, banking and automobiles.
Who owns J.D. Power?
In 2019, XIO Group sold J.D. Power to Chicago-based private equity firm Thoma Bravo, who merged it with Autodata, an automotive data and software company.
Is J.D. Power reliable?
Because it combines an unbiased methodology with a large sample size and financial independence, J.D. Power is considered a reliable source for judging insurance companies, mortgage lenders and other industries.
What is a J.D. Power award?
A J.D. Power award is given to companies that are top-rated in J.D. Power's benchmarking studies. While ranking decisions are independent, award winners may pay to license the use of J.D. Power awards in advertising and marketing materials.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
