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Almost 98% of drivers misunderstand how their auto insurance works

According to a recent survey, a staggering number of US drivers – approximately 96% – are unaware of the fundamental elements of their auto insurance coverage.

The poll, which interviewed almost 1,000 drivers across the country, looked at how well motorists understand their auto insurance to see if they are aware of what it covers and how certain situations might affect their premiums.

According to the report, only 56 percent of drivers obtained a passing grade on the survey – based on typical scoring criteria, this would imply that respondents failed to comprehend how their auto insurance worked.

Key findings of the study include:

  • According to a recent study, more than half of drivers (55%) have incorrect ideas about at least one crucial element of their auto insurance coverage, and nearly two-thirds (65%) are misinformed on multiple aspects.
  • Almost 78% of drivers think that comprehensive coverage will pay for damage to their car if they have an accident, but this is not always the case. Comprehensive coverage usually only pays for damage to your car that is not caused by a collision, such as if it gets damaged by something like a tornado or a wildfire.52% of respondents wrongly assume that bodily injury liability – required by most US states – covers their medical expenses in an accident.
  • Some drivers do not apply for auto insurance discounts, even if they know they are eligible. In fact, women drivers are much less likely than men to apply for discounts.
  • Eighty-four percent of drivers surveyed said that comparing car insurance with an independent agent can lead to better coverage for the same or less money.

Most American drivers spend over $1,600 on car insurance a year. But even though they pay this money, they might not understand what it is for.

Despite these findings, it is encouraging to see that so many drivers are interested in learning more about their auto insurance – hopefully, this will lead them to make wiser choices when it comes to protecting themselves and their cars.

If you have no idea what your automobile insurance policy covers, we at Beacon Point Insurance can assist! We offer a wide range of coverage options that will fit your needs and budget, and our agents are always happy to answer any questions you may have. Call us today to get started! 816-254-6100

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