NEW YORK, Oct. 20, 2020 /PRNewswire/ -- Since all
drivers have to have auto insurance, dealing with it becomes a
mandatory part of one's life. While most people believe that they
do understand how their coverage works, few actually know the
specifics of what their auto insurance covers.
ValuePenguin quizzed more than 1,000 respondents on the
specifics of liability and comprehensive coverage, finding that —
in most cases — the general population is misinformed about auto
insurance.
Key findings:
- The average American flunked our auto insurance literacy quiz.
Respondents on average answered 3.8 out of 9 questions correctly,
resulting in a grade of 42%.
- While more than half knew what personal liability was, only 8%
knew what comprehensive car insurance was, while 24% could
correctly define property damage liability.
- 71% of respondents were very confident that they had enough car
insurance to pay for any damage, while another 24% were somewhat
confident.
- Few people admitted they had lapses in their auto insurance
knowledge, as only 19% on average said they didn't know about the
different forms of auto insurance covered.
- 2 in 3 consumers didn't shop around for a better deal the last
time their auto insurance policy was up for renewal. That
percentage jumps to 76% for baby boomers and 73% for Generation
Xers.
View full report: Auto Insurance Literacy Report
About ValuePenguin.com: ValuePenguin.com, part of LendingTree
(NASDAQ: TREE), is a personal finance website that conducts
in-depth research and provides objective analysis to help guide
consumers to the best financial decisions. ValuePenguin focuses on
value, assessing whether the return of a particular decision is
worth the cost or risk of that option, and how this stacks up with
the other possible choices they may have. For more information,
please visit www.valuepenguin.com, like our Facebook page, or
follow us on Twitter @ValuePenguin.
Media Contact:
Nadia Gonzalez (Mrs.)
Nadia@LendingTreeNews.com
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SOURCE ValuePenguin.com