CarInsurance.com Insights
- Auto claims customer satisfaction takes a hit: J.D. Power reports that increasing deductibles and total loss claims are leaving drivers less satisfied with their auto claims experience.
- Relief for Florida drivers: Reforms by the governor, plus approximately $1 billion in refunds by Progressive, have improved the car insurance landscape in Florida.
- High third-quarter earnings for Progressive: Progressive saw an increase in net premiums, mainly due to the rising demand for car insurance.
- Increased profits for Travelers: Fewer catastrophic losses boosted third-quarter earnings for Travelers.
- Generative AI risks: Generative AI may be risky for car insurers and increase rates for policyholders.
- California Department of Insurance (CDI) takes action against Tesla: Improper claims handling has led the CDI to investigate Tesla’s insurance arm.
- Volvo and State Farm offer car insurance: The automaker and insurer are teaming up to provide policies at point of sale for new car buyers.
The car insurance industry is not set in stone. In fact, it changes often. If you’re an everyday driver who wants to stay updated on the latest news and happenings, we have you covered.
Our team did the heavy lifting and compiled this car insurance news roundup for November 2025.
Rising deductibles and total losses strain satisfaction with claims
J.D. Power’s 2025 U.S. Auto Claims Satisfaction Study reveals that customer satisfaction with car insurance claims is under pressure, despite the fact that some car insurance companies have lowered rates following the 2024 insurance rate hikes.
There are two primary reasons for this: 26% of policyholders have policies with deductibles of at least $1,000, resulting in higher-out-of-pocket claims costs. In addition, 27% of claims are considered total losses, reflecting more vehicles that are deemed beyond repair.
$1 billion in car insurance refunds provide relief to Florida drivers
Drivers in Florida can expect cheaper premiums, due to the recent reforms by Florida Governor Ron DeSantis, which allow for greater oversight of rate filings, fewer lawsuits and new car insurers entering the market.
The largest insurance companies in the Sunshine State are reducing rates by an average of 6.5%. Additionally, Progressive Insurance is issuing about $1 billion in refunds to Florida motorists in response to the improved conditions.
High auto insurance demand raises Progressive’s third-quarter earnings
In the third quarter of 2025, Progressive Insurance announced net premiums of around $21.38 billion, an increase of 10% of the same quarter in 2024. This is primarily the high demand for car insurance as drivers strive to protect themselves from a volatile market and costly repairs.
Progressive’s combined ratio of 89.5% reveals the insurer earned more in premiums than it paid out in claims, showcasing its ability to acquire customers while still managing risk effectively.
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Travelers sees increased profits due to fewer catastrophic losses
Travelers reported an income of $1.87 billion in the third quarter of 2025 (up from $1.22 billion in the same period last year) while premiums also rose to $11.47 billion. Lower catastrophic losses due to fewer weather events in the U.S. led to the insurer’s improved profitability and performance.
These results may bring about more affordable rates but not immediately, especially if repair costs and auto claims continue to rise.
Generative AI poses insurance fraud risks
While the car insurance industry may benefit from generative AI, it may also pose some serious risks. As insurance providers implement the technology to support them with pricing, underwriting and fraud detection, some criminals are using it to fabricate accidents, evidence and documents.
A recent study shared by Cornell University indicates that these pitfalls of generative AI can hinder profitability for car insurers while leading to stricter claims processes and higher rates for consumers.
California Department of Insurance (CDI) investigates Tesla’s insurance practices
In October, the California Department of Insurance (CDI) took action against Tesla’s car insurance arm, alleging that the auto manufacturer has continued to ignore claims handling laws, resulting in payment delays and inadequate customer responses.
Volvo partners with State Farm to offer car insurance at a dealership
Volvo and State Farm have joined forces to allow Volvo buyers to request quotes and buy car insurance coverage from State Farm agents directly, when they’re finalizing a new car purchase.
This means a “one-stop-shop” experience for consumers while allowing both insurance companies and automakers to secure customers and build loyalty.
Final thoughts
The car insurance landscape is always evolving — from AI and its potential effect on premiums to new insurance offerings by automakers at point-of-sale.
For everyday drivers, it’s crucial to stay in the know, compare quotes when premiums increase and leverage discounts opportunities for safe driving, bundling policies and more.
Sources
- Insurance Journal. “Volvo, State Farm Partner on Point-of-Sale Auto Insurance.” Accessed October 2025.
- California Department of Insurance. “California Department of Insurance brings enforcement actions against Tesla Companies to stop insurance business practices harming California drivers.” Accessed October 2025.
- Cornell University. “A new wave of vehicle insurance fraud fueled by generative AI.” Accessed October 2025.
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- Reuters. “Insurer Travelers misses revenue estimates on slower commercial property growth.” Accessed October 2025.
- Reuters. “Insurer Progressive’s third-quarter profit rises on higher auto insurance demand.” Accessed October 2025.
- Executive Office of the Governor, Florida. “Governor Ron DeSantis Announces $1 Billion in Auto Insurance Refunds as a Result of Florida’s Improving Insurance Market.” Accessed October 2025.
- Businesswire. “Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, J.D. Power Finds.” Accessed October 2025.
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