Only About 1 in 4 Gen Z Adults Can Define 'Deductible' and 'Co-Pay'

WASHINGTON, July 22, 2024 /PRNewswire/ -- A new survey from the National Association of Insurance Commissioners (NAIC) found that 35% of Gen Z adults currently pay for a cellphone protection plan, while only 21% have renters insurance. It may be because many don't understand their risks and why having the right insurance coverage matters.

Today, Andrew N. Mais, President of the NAIC and Connecticut Insurance Commissioner, discussed the survey and shared why Americans, especially young adults, need to prioritize insurance coverage during a satellite media tour broadcast from the University of Connecticut's Stamford campus. Nine television and nine radio outlets interviewed Commissioner Mais during the Monday session.

Over half of respondents (54%) shared they feel "overwhelmed or anxious" at "the thought of dealing with insurance." About 1 in 3 young adults (34%), for instance, said they were "going to try to wait as long as possible" to get their own life insurance, with over 1 in 4 (28%) saying the same for health insurance.

Just over 1 in 4 Gen Z adults could correctly identify the insurance terms "deductible" (27%) and "copay" (29%). A higher percentage (36%) said they could identify "out of pocket," while only 19% said they could define "out of network." The survey also found 22% of Gen Z respondents have little or no awareness of the importance of auto insurance, and 14% have little or no awareness of the importance of health insurance.

"There's a gap in insurance knowledge among Gen Z adults," said Mais. "This is a critical time in their lives, as they are laying the groundwork for their financial futures, and as an insurance regulator, I know how confusing navigating the world of insurance can be. The good news is you don't have to figure these things out by yourself. There are independent resources to help consumers of all ages and stages of their lives get answers to insurance questions and ensure there are no gaps in their coverage."

"Our survey also revealed some encouraging findings about Gen Z," Mais continued. "For example, 61% of Gen Z adults surveyed already pay for their own health insurance, while 49% carry automobile coverage. There are several areas where we have a solid base to build on as we 'Mind the Gap,' or help close protection gaps and ensure more people have the coverage they need."

State Departments of Insurance (DOI) advocate on behalf of consumers across all coverage types in the insurance world. If consumers have questions or concerns about obtaining insurance coverage, filing claims, appealing denied claims, insurance fraud, or resolving issues with an agent, broker, or insurance provider, their state's DOI is here to help.

Find out how to contact each state DOI at the NAIC's website, naic.org. The NAIC website also answers some of consumers' most asked questions about selecting the right plan for them.

About the Survey

The NAIC commissioned Atomik Research to conduct an online survey of 1,003 adults throughout the United States. The sample consists of Gen Z adults, ages 18 to 27, throughout the U.S. The margin of error for the overall sample is +/- 3 percentage points with a confidence level of 95 percent. Fieldwork took place between June 24 and June 26, 2024. Atomik Research is an independent creative market research agency.

SOURCE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS