Survey: Most Americans Do Not Fully Understand Insurance Coverage...Yet 86% Say They Do
June 18 2024 - 12:34PM
Business Wire
Trusted Choice® study reveals critical need for
independent agents to help consumers navigate nuances of the
insurance market.
Consumers have many questions about insurance coverage, and a
new survey shows that even the most discerning policyholders do not
fully understand the intricacies. Ahead of National Insurance
Awareness Day on June 28, Trusted Choice–the national
consumer brand representing the members of the Independent
Insurance Agents & Brokers of America (the Big “I”)–surveyed
consumers about their insurance acumen.
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Trusted Choice®, the national consumer
brand representing the members of the Independent Insurance Agents
& Brokers of America (the Big “I”), surveyed consumers about
their insurance acumen. (Graphic: Business Wire)
While 86% of respondents said they had a strong understanding
of what their policies covered, when their knowledge was put to the
test many were incorrect or unsure about coverage
specifics.
"Because insurance protects people’s most important assets, it’s
crucial that policyholders understand their coverage. But
unfortunately, our survey shows there is a considerable insurance
knowledge gap among consumers,” said Charles Symington, Big "I"
president and CEO. “Independent insurance agents can bridge that
gap by serving as a resource on coverage expectations versus
realities, especially in this difficult insurance market where many
people need more guidance.”
SURVEY RESULTS
According to the survey:
- Flood Damage: 56% of Americans are unaware that a
standard homeowners policy does not cover flood damage.
- Home Renovations: 70% are unaware that a standard
homeowners policy does not cover materials or fixtures that are to
be installed during renovations.
- Home Inventory: 46% do not have or are unsure if they
have a home inventory of major household items in case they need to
file a claim.
- Business Use of Vehicle: 55% are unaware that a standard
auto policy does not cover business use of the vehicle.
- Items Stolen from Vehicle: 44% incorrectly believe that
personal items stolen from their car are covered by a standard auto
insurance policy, though it is in fact a standard home or renters
insurance policy that typically covers such theft.
- Parking Tickets: 57% are unaware that a parking ticket,
in general, won’t affect a driver’s auto insurance premiums.
THE ROLE OF AN INDEPENDENT AGENT
“Insurance coverage can be confusing. Consumers often think they
have a strong grasp on understanding their policies, but oftentimes
they don’t. An independent agent is best equipped to walk consumers
through the entire process–from shopping for coverage to purchasing
a plan and filing a claim,” added Kevin Brandt, executive director
of Trusted Choice. “With their unbiased guidance and personalized
approach, they empower individuals to navigate policies with
clarity and confidence, ensuring they truly understand their
coverage and make informed decisions."
To find a Trusted Choice independent agent, visit
www.trustedchoice.com.
Methodology
National survey via mobile targeting of 400 consumers who have
home, auto, pet, jewelry and/or personal umbrella insurance.
About Trusted Choice® and the Big “I”
Trusted Choice® is the national consumer brand representing the
members of the Independent Insurance Agents & Brokers of
America (the Big “I"). Founded in 1896, Big “I” is the nation's
oldest and largest national association of independent insurance
agents and brokers. Trusted Choice independent agents offer
consumers all types of insurance—property, casualty, life, health,
employee benefit plans and retirement products—from a variety of
insurance companies. There are over 25,000 member agencies
nationwide offering customized advice and solutions to families and
businesses. Learn more at trustedchoice.com and
independentagent.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240618486693/en/
Media: Gillian Linden gillian@rosengrouppr.com /
703.402.6507 www.independentagent.com