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Exploring What Drivers Actually Know About Their Car Insurance Coverage

Jun 09, 2022

Car Insurance

Exploring What Drivers Actually Know About Their Car Insurance Coverage

Car insurance coverage is designed to offer protection against at-fault accidents or collisions with another vehicle or an object. However, what is covered and to what extent depends on the coverage you buy. According to the Forbes Advisor Survey, most drivers don’t understand their car insurance policy and what it covers. Forbes Advisor, along with OnePoll market research company, conducted an online survey on March 23-24, 2022, among 2000 US drivers.

Here is a look at what the survey has found about American drivers’ knowledge about their car insurance.

Key Findings of the Survey to Gauge the Knowledge of Auto Insurance among American Drivers

Drivers Often Overestimate the Coverage Bought

50% of the surveyed drivers think their car insurance covers accidental death and dismemberment (AD&D). However, car insurance policies do not offer AD&D coverage.

Drivers Think They Have Coverage That Is Not Actually a Part of Car Insurance Policies

  • 47% of drivers think their auto insurance policies cover “additional living expenses,” but renters and home insurance policies offer this coverage.
  • 41% of drivers believe they have “vehicle emissions” coverage in their car insurance policies, but there is no coverage for emissions.
  • 49% say their car insurance provides “extended crash protection,” but there is no such coverage.

Drivers Between 18 and 25 Think They Have Coverage That Does Not Exist

  • 65% say their car insurance covers “vehicle emissions.”
  • 69% believe they have “additional living expenses” coverage.
  • 74% think they have “AD&D coverage.”
  • 68% say they have “extended crash protection.”

Most Drivers Don’t Know What Car Insurance Types Cover What Situations

Many drivers did not know liability coverage is crucial for a car insurance policy and required in most states. Only 31% of drivers knew it covers third-party bodily injuries and property damage resulting from an at-fault accident. 9% of drivers don’t know what it covers, and 60% of drivers’ answers about the coverage were wrong.

59% of drivers don’t know that comprehensive coverage will pay for damages caused by fire, vandalism, or an object (like a tree falling on the car).

Only 33% of drivers knew that collision coverage pays for repairing or replacing the vehicle that is damaged in an accident with another vehicle or object such as a tree, lamp post, fence, etc. 10% of drivers don’t know what it covers, and 57% of drivers gave wrong answers.

Only 3% of drivers knew that uninsured motorist coverage would pay for their injuries resulting from an accident caused by an uninsured motorist. 97% of drivers thought it would cover injuries sustained by an uninsured motorist if they crash into your car.

Get to know about your car insurance coverage, so you will know when to file a claim and what to expect after a car accident or damage.

If you are looking for a comprehensive auto insurance policy that covers your unique needs, contact us today at Reata Insurance Group. We will answer all your questions concerning car insurance coverage.

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