Oct 20, 2020, 13:21 ET
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.
- 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.
Nadia Gonzalez (Mrs.)
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