Canadian drivers appear far more content with their auto insurers than their U.S. counterparts. A large consumer study by Rates.ca in the country’s biggest private auto markets reports overall satisfaction at 82%, even after a year of double‑digit premium increases. By contrast, J.D. Power’s latest U.S. study finds only 62% of Americans are at least somewhat satisfied. That is a 20 percentage point gap in sentiment between two markets that are often viewed as similar.
This is striking because the two markets face essentially the same major factors: higher repair costs, elevated theft losses and multi‑year rate hikes. In the United States, profitability has finally returned, but the customer experience has not healed at the same pace.
Lessons American Insurers Can Learn From Canada
Canada’s numbers hint at why sentiment diverges. The Canadian study cites high levels of trust (76%) and finds that satisfaction is meaningfully higher when customers interact with a real person. In short, the levers moving Canadian sentiment are service, communication and perceived fairness. These are factors that can cushion the blow of rising premiums.
There are caveats. The two are different studies with different questions and methodologies. However, the size of the gap and the explanation for the difference make it worth paying attention to.
There is a clear, pragmatic message for American insurers. In the U.S., as price inflation abates and underwriting normalizes, the battleground shifts to service quality: faster claims resolution, simplicity, and more human interaction. In particular, insurers should look at the following critical factors:
- Ease of reporting a claim: Customers want a process that’s straightforward and accessible, regardless of the situation.
- Clear communication of the claims process: Insurers that outline each step upfront reduce customer frustration and uncertainty.
- Proactive updates: Policyholders value being kept in the loop, whether through phone calls, emails, or app notifications.
- Knowledgeable representatives: Customers expect claim handlers to have the answers, resolve issues promptly, and guide them with empathy.
These factors may endear more trust from customers than multibillion-dollar ad campaigns. In a market where competition on price and marketing is fierce, insurers that excel in service and communication may find opportunity.
