Auto Insurance Revealed – How Many American Drivers Don’t Understand Their Policies?

A staggering number of U.S. drivers — around 96% — don’t understand basic aspects of their car insurance policy, according to a new survey by insurance comparison website Insurify.

The survey, which polled more than 1,000 respondents, gauged how well U.S. drivers understand their car insurance, asking them questions about their policies, what it covers and factors that affect their insurance rates. .

It found that the average driver only got 56% on the survey – by standard scoring standards, that would mean respondents didn’t fully understand how their car insurance works.

Key findings from the study include:

  • 96% of drivers misunderstand at least one key aspect of their car insurance policy, and more than half have incorrect assumptions about several features of their policy.
  • 78% of drivers mistakenly think that multi-risk covers damage to their vehicle in the event of an accident.
  • 52% of respondents incorrectly assume that personal injury liability – required by most US states – covers their medical expenses in the event of an accident.
  • A third of drivers surveyed do not ask for car insurance discounts, even if they know they are entitled to them. It was also found that female drivers are much less likely than males to ask for discounts.
  • On the other hand, 84% of drivers surveyed agreed that comparing car insurance quotes between multiple providers can lead to cost savings.

“The average American driver spends more than $1,632 on car insurance a year, but they might not even understand what that money is going to,” commented Kacie Saxer-Taulbee, head of research and content at Insurify. “We wanted to release this report to demystify the basics of auto insurance and help drivers make more responsible decisions when purchasing coverage.”