Auto insurance revealed – how many US drivers don’t understand their policies?

Auto insurance revealed - how many US drivers don't understand their policies?



A staggering number of American drivers – about 96% – do not understand the fundamental aspects of their auto insurance policy, a new survey by insurance comparison website Insurify has found.

The survey, which interviewed more than 1,000 respondents, assessed how well drivers across America understand their auto insurance, asking them questions about their policies, what it covers, and what factors affect their insurance rates.

It found that the average driver scored only 56% on the survey – based on standard scoring standards, it would mean the respondents failed to properly understand how their auto insurance works.

Key findings of the study include:

  • 96% of drivers misunderstood at least one key aspect of their auto insurance policy, and more than half have false assumptions about multiple features of their policy.
  • 78% of drivers erroneously believe that comprehensive coverage covers damage to their vehicle in the event of an accident.
  • 52% of respondents wrongly assume that bodily injury liability – required by most US states – covers their medical expenses in an accident.
  • A third of the drivers surveyed do not apply for auto insurance discounts, even if they know they are eligible for them. It was also found that women drivers are significantly less likely than men to apply for discounts.
  • On the flip side, 84% of drivers surveyed agreed that comparing auto insurance quotes between multiple providers can lead to savings.

“The average American driver spends over $1,632 on car insurance a year, but they might not even understand what that money is going towards,” commented Insurify manager of research and content Kacie Saxer-Taulbee. “We wanted to publish this report to demystify car insurance basics and help drivers make more responsible decisions when buying coverage.”

Reference-www.insurancebusinessmag.com

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