CAMBRIDGE, Mass.–(BUSINESS WIRE)–Insurify, the highest rated US company car insurance comparator site, published its report titled “The 5 Biggest Car Insurance Myths: What Most Americans Get Their Policies WrongThursday. The report, which studies the car insurance knowledge of the average American, found that 96% of American drivers do not understand the fundamental aspects of their car insurance policy, including the damages against which it covers them. covers and the out-of-pocket expenses to which they are vulnerable in the event of a claim.
The report polled more than 1,000 respondents to assess how well drivers across the United States understand their auto insurance policies, asking questions about their auto insurance coverage, what it covers and the factors who determine their insurance rates.
“The average American driver spends more than $1,632 on car insurance a year, but they might not even understand what that money is going to,” said Kacie Saxer-Taulbee, head of research and content at Insurify. “We wanted to release this report to demystify the basics of auto insurance and help drivers make more responsible decisions when purchasing coverage.”
Overall, the average driver scored just 56% on the survey, a failing grade by most standards. The report broke down the survey results, accompanying each misconception with the correct facts. Here are some of the key findings of the report:
– 96% of drivers misunderstand at least one key aspect of their car insurance policy, and more than half have incorrect assumptions about several features of their coverage.
– 78% of drivers mistakenly think that multi-risk covers damage to their own vehicle in the event of an accident.
– 52% of drivers incorrectly assume that personal injury liability, which is required in most states, covers their own medical expenses in the event of an accident.
– A third of U.S. drivers don’t ask for car insurance discounts, even though they know they’re entitled to them. Women are significantly less likely than men to take advantage of discounts.
– 84% of drivers surveyed agreed that comparing car insurance quotes between multiple providers saves money.
See Insurify’s report “The 5 Biggest Auto Insurance Myths: What Most Americans Get Their Policies Wrong,” for more information on auto insurance knowledge in America.
Based in Cambridge, MA, Insurify is a one-stop comparison platform for auto, home and life insurance, helping consumers save time and money on their coverage by compare quotes. With over $170 billion in insurance coverage purchased and over four million happy customers, Insurify has grown its revenue 50x since 2016 and has won multiple insurance industry awards, including: Forbes Fintech 50 2021, Stevies’ Gold International Business Award for a Mid-Sized Insurance Company 2021, Inc.’s 5000 Fastest Growing Private Companies in America 2021, EY 2021 New England Entrepreneur of the Year and Insurtech Insights’ Future 50 2021.